Registration No. 2-34393
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. /_/
Post-Effective Amendment No. 69 /X/
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT
OF 1940
Amendment No. 52 /X/
(Check appropriate box or boxes.)
JANUS INVESTMENT FUND
(Exact Name of Registrant as Specified in Charter)
Suite 300, 100 Fillmore Street, Denver, Colorado 80206-4923
Address of Principal Executive Offices (Zip Code)
Registrant's Telephone No., including Area Code: 303-333-3863
David C. Tucker - Suite 300, 100 Fillmore Street, Denver, Colorado 80206-4923
(Name and Address of Agent for Service)
Approximate Date of Proposed Offering: September 28, 1995
It is proposed that this filing will become effective (check appropriate line):
X immediately upon filing pursuant to paragraph (b) of Rule 485.
__ on (date) pursuant to paragraph (b) of Rule 485.
__ 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
__ on (date) pursuant to paragraph (a)(1) of Rule 485.
__ 75 days after filing pursuant to paragraph (a)(2) of Rule 485.
__ on (date) pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following line:
__ this post-effective amendment designates a new effective
date for a previously filed post-effective amendment.
Registrant has registered an indefinite number of shares of beneficial interest
under the Securities Act of 1933 pursuant to Rule 24f-2(a) and filed a Rule
24f-2 Notice on December 29, 1994, for the fiscal year ended October 31, 1994,
with respect to all of its series in existence as of October 31, 1994.
<PAGE>
JANUS INVESTMENT FUND
(Janus Money Market Fund - Institutional Shares,
Janus Government Money Market Fund - Institutional Shares and
Janus Tax-Exempt Money Market Fund - Institutional Shares)
Cross Reference Sheet
Between Prospectus and Statement of
Additional Information and Form N-1A Item
(Cross Reference Sheets for other series of Janus Investment Fund are
included in previous post-effective amendments related to those series)
FORM N-1A ITEM CAPTION IN PROSPECTUS
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PART A
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1. Cover Page Cover Page
2. Synopsis Cover Page; Fee Table
3. Condensed Financial Financial Highlights; Performance
Information
4. General Description of Investment Objectives, Policies and
Registrant Techniques; Miscellaneous Information
5. Management of the Fund Investment Adviser and Administrator;
Miscellaneous Information
6. Capital Stock and Other Distributions and Taxes; Shareholder's Guide;
Securities Miscellaneous Information
7. Purchase of Securities Being Shareholder's Guide
Offered
8. Redemption or Repurchase Shareholder's Guide
9. Pending Legal Proceedings Not Applicable
<PAGE>
FORM N-1A ITEM CAPTION IN STATEMENT OF
ADDITIONAL INFORMATION
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PART B
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10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and Miscellaneous Information
History
13. Investment Objectives and Investment Policies and Restrictions; Types
Policies of Securities and Investment Techniques;
Appendix A - Description of Securities
Ratings; Appendix B - Description of
Municipal Securities
14. Management of the Fund Investment Adviser and Administrator;
Officers and Trustees
15. Control Persons and Principal Not Applicable
Holders of Securities
16. Investment Advisory and Investment Adviser and Administrator;
Other Services Custodian, Transfer Agent and Certain
Affiliations; Portfolio Transactions and
Brokerage; Officers and Trustees;
Miscellaneous Information
17. Brokerage Allocation and Portfolio Transactions and Brokerage
Other Practices
18. Capital Stock and Other Redemption of Shares; Miscellaneous
Securities Information
19. Purchase, Redemption and Determination of Net Asset Value; Purchase of
Pricing of Securities Being Shares; Redemption of Shares; Shareholder
Offered Accounts
20. Tax Status Dividends and Tax Status
21. Underwriters Custodian, Transfer Agent and Certain
Affiliations
22. Calculation of Performance Performance Data
Data
23. Financial Statements Financial Statements
<PAGE>
[LOGO]
JANUS MONEY MARKET FUND
JANUS GOVERNMENT MONEY MARKET FUND
JANUS TAX-EXEMPT MONEY MARKET FUND
Institutional Shares
100 Fillmore Street, Suite 300
Denver, CO 80206-4923
(800) 29JANUS
April 14, 1995 as supplemented September 28, 1995
Janus Money Market Fund, Janus Government Money Market Fund, and Janus
Tax-Exempt Money Market Fund (individually, a "Fund" and, collectively, the
"Funds") are designed for investors who seek maximum current income consistent
with stability of capital. This prospectus offers a separate class of shares of
each Fund (collectively, the "Shares") exclusively to institutional clients.
Each Fund is a separate series of Janus Investment Fund (the "Trust"), an
open-end management investment company. The Funds are recently organized and
have a limited operating history.
Each Fund invests exclusively in high quality money market instruments. AN
INVESTMENT IN A FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
THERE IS NO ASSURANCE THAT A FUND WILL BE ABLE TO MAINTAIN A STABLE NET ASSET
VALUE OF $1.00 PER SHARE.
The Shares are offered only to certain institutional investors, including
corporations, foundations and trusts. The Shares are offered with no sales
charges, commissions, redemption fees, Rule 12b-1 fees or deferred sales
charges. The minimum initial investment is $250,000. There is no minimum amount
required for subsequent investments. For complete details on how to purchase,
redeem and exchange Shares, please see the Shareholder's Guide beginning at page
10.
This Prospectus contains information about the Shares that prospective investors
should consider before investing and should be read carefully and retained for
future reference. Additional information about the Shares is contained in the
Statement of Additional Information ("SAI") dated April 14, 1995, as
supplemented September 28, 1995, which is filed with the Securities and Exchange
Commission ("SEC") and is incorporated by reference into this Prospectus. The
SAI is available upon request and without charge by writing or calling the Funds
at the address or telephone number shown above.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY STATE
SECURITIES COMMISSION NOR HAS THE SEC OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES IN ANY STATE OR
OTHER JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH AN OFFER IN
SUCH STATE OR OTHER JURISDICTION.
CONTENTS
FEE TABLE
................................................................. 2
FINANCIAL HIGHLIGHTS
................................................................. 3
INVESTMENT OBJECTIVES,
POLICIES AND TECHNIQUES
................................................................. 4
INVESTMENT ADVISER AND ADMINISTRATOR
................................................................. 7
DISTRIBUTIONS AND TAXES
................................................................. 8
PERFORMANCE
................................................................. 9
MISCELLANEOUS INFORMATION
................................................................. 9
SHAREHOLDER'S GUIDE
How to Open an Account .................................................... 10
Purchasing Shares ......................................................... 10
How to Exchange Shares .................................................... 11
How to Redeem Shares ...................................................... 11
Special Shareholder Services
and Other Information ................................................... 11
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
1
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FEE TABLE
SHAREHOLDER TRANSACTION EXPENSES (Applicable to each Fund)
Sales Load Imposed on Purchases None
Sales Load Imposed on Reinvested Dividends None
Deferred Sales Load None
Redemption Fees None
Exchange Fee None
ANNUAL OPERATING EXPENSES*
(Expressed as a percentage of average net assets)
<TABLE>
<CAPTION>
Management Fee Other Expenses Total Operating Expenses
-------------- -------------- ------------------------
<S> <C> <C> <C>
Janus Money Market Fund - Institutional Shares .10% .05% .15%
Janus Government Money Market Fund - Institutional Shares .10% .05% .15%
Janus Tax-Exempt Money Market Fund - Institutional Shares .10% .05% .15%
</TABLE>
EXAMPLE*
You would indirectly pay the following expenses on a $1,000 investment, assuming
a 5% annual return, with or without redemption at the end of each period:
1 Year 3 Years
------ -------
Janus Money Market Fund - Institutional Shares $2 $5
Janus Government Money Market Fund - Institutional Shares $2 $5
Janus Tax-Exempt Money Market Fund - Institutional Shares $2 $5
*The fees and expenses in the table and example above are based on the estimated
fees and expenses that the Shares expect to incur in their initial fiscal year,
net of fee waivers from the investment adviser. Without such waivers, the
Management Fee, Other Expenses and Total Operating Expenses are estimated to be
.20%, .15% and .35%, respectively. See "Investment Adviser and Administrator"
for a more detailed discussion of the fees.
THE EXPENSES IN THE EXAMPLE ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF
PAST OR FUTURE EXPENSES AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN. THE ASSUMED 5% ANNUAL RETURN IS HYPOTHETICAL AND SHOULD NOT BE CONSIDERED
A REPRESENTATION OF PAST OR FUTURE ANNUAL RETURNS, WHICH MAY BE GREATER OR LESS
THAN THE ASSUMED AMOUNT.
The purpose of the preceding table and example is to assist the investor in
understanding the various costs and expenses that an investor in each Fund will
bear directly or indirectly. These expenses are described in greater detail
under "Investment Adviser and Administrator."
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
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FINANCIAL HIGHLIGHTS
The unaudited information below is for the period from April 14, 1995
(inception) to August 31, 1995. Expense and income ratios have been annualized
while total returns have not been annualized.
<TABLE>
<CAPTION>
Janus Janus Janus
Money Market Government Money Market Tax-Exempt Money Market
Institutional Shares Fund(1) Fund(1) Fund(1)
-------------------- ------- ------- -------
<S> <C> <C> <C>
1. Net asset value, beginning of period $1.00 $1.00 $1.00
Income from investment operations:
2. Net investment income .01 .01 .01
3. Net gains or (losses) on securities
(both realized and unrealized) -- -- --
4. Total from investment operations .01 .01 .01
Less distributions:
5. Dividends (from net investment income) (.01) (.01) (.01)
6. Distributions (from capital gains) -- -- --
7. Total distributions (.01) (.01) (.01)
8. Net asset value, end of period $1.00 $1.00 $1.00
9. Total return 2.26% 2.21% 1.43%
10. Net assets, end of period (in thousands) $370,947 $42,540 $10
11. Ratio of expenses to average net assets .15% .15% .15%
12. Ratio of net investment income
to average net assets 5.90% 5.77% 3.87%
</TABLE>
(1) Period from April 14, 1995 (inception) through August 31, 1995.
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
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INVESTMENT OBJECTIVES, POLICIES AND TECHNIQUES
Unless otherwise stated, the investment objectives and policies set forth in
this Prospectus are not fundamental and may be changed by the Trustees of the
Trust (the "Trustees") without shareholder approval. Shareholders will be
notified of material changes in investment objectives or policies. If there is a
change in the investment objective or policies of any Fund, shareholders should
consider whether that Fund remains an appropriate investment in light of their
then current financial position and needs. The Funds are subject to additional
investment policies and restrictions described in the SAI, some of which are
fundamental and may not be changed without shareholder approval.
INVESTMENT OBJECTIVES
The investment objective of Janus Money Market Fund and Janus Government Money
Market Fund is to seek maximum current income to the extent consistent with
stability of capital. The investment objective of Janus Tax-Exempt Money Market
Fund is to seek maximum current income that is exempt from federal income taxes
to the extent consistent with stability of capital. There can be no assurance
that a Fund will achieve its investment objective or that the Shares will be
able to maintain a stable net asset value of $1.00 per share.
COMMON INVESTMENT POLICIES
The Funds will invest only in eligible high quality, short-term money market
instruments that present minimal credit risks, as determined by Janus Capital
Corporation, the Funds' investment adviser ("Janus Capital"), pursuant to
procedures adopted by the Trustees. Each Fund may invest only in U.S.
dollar-denominated instruments that have a remaining maturity of 397 days or
less (as calculated pursuant to Rule 2a-7 under the Investment Company Act of
1940 ("1940 Act")) and will maintain a dollar-weighted average portfolio
maturity of 90 days or less.
Except to the limited extent permitted by Rule 2a-7 and except for U.S.
Government Securities (as defined below), each Fund will not invest more than 5%
of its total assets in the securities of any one issuer. A guarantor is not
considered an issuer for the purpose of this limit, provided that the value of
all securities held by a Fund that are issued or guaranteed by that institution
does not exceed 10% of the Fund's total assets. In the case of Janus Tax-Exempt
Money Market Fund, up to 25% of its assets may be invested without regard to the
foregoing limitations. To ensure adequate liquidity, no Fund may invest more
than 10% of its net assets in illiquid investments, including repurchase
agreements maturing in more than seven days and certain time deposits that are
subject to early withdrawal penalties and mature in more than seven days.
Because the Funds are typically used as a cash management vehicle, they intend
to maintain a high degree of liquidity. Janus Capital determines and monitors
the liquidity of portfolio securities under the supervision of the Trustees.
RATINGS.
High quality money market instruments include those that (i) are rated (or, if
unrated, are issued by an issuer with comparable outstanding short-term debt
that is rated) in one of the two highest rating categories for short-term debt
by any two nationally recognized statistical rating organizations ("NRSROs") or,
if only one NRSRO has issued a rating, by that NRSRO or (ii) are otherwise
unrated and determined by Janus Capital to be of comparable quality. Each Fund,
except Janus Tax-Exempt Money Market Fund, will invest at least 95% of its total
assets in securities in the highest rating category (as determined pursuant to
Rule 2a-7). Descriptions of the rating categories of Standard & Poor's Ratings
Services, Moody's Investors Service, Inc., and certain other NRSROs are
contained in the SAI, as is a further description of the Funds' investment
policies.
Although each Fund only invests in high quality money market instruments, an
investment in a Fund is subject to risk even if all securities in its portfolio
are paid in full at maturity. All money market instruments, including U.S.
Government Securities, can change in value as a result of changes in interest
rates, the issuer's actual or perceived creditworthiness or the issuer's ability
to meet its obligations.
TYPES OF SECURITIES
JANUS MONEY MARKET FUND
Janus Money Market Fund pursues its objective by investing primarily in high
quality commercial paper and obligations of financial institutions. The Fund may
also invest in U.S. Government Securities (as defined below) and municipal
securities, although the Fund expects to invest in such securities to a lesser
degree.
DEBT SECURITIES.
The Fund may invest in debt obligations of domestic issuers, including
commercial paper (short-term promissory notes issued by companies to finance
their, or their affiliates', current obligations), notes and bonds, and variable
amount master demand notes. The Fund may invest in privately issued commercial
paper which is restricted as to disposition under the federal securities laws.
In general, any sale of this paper may not be made absent registration under the
Securities Act of 1933 (the "1933 Act") or the availability of an appropriate
exemption therefrom. Pursuant to the provisions of Section 4(2) of the 1933 Act,
however, some privately issued commercial paper is eligible for resale to
institutional investors, and accordingly, Janus Capital may determine that a
liquid market exists for that paper pursuant to guidelines adopted by the
Trustees.
OBLIGATIONS OF FINANCIAL INSTITUTIONS.
The Fund may invest in obligations of financial institutions. Examples of
obligations in which the Fund may invest include negotiable certificates of
deposit, bankers' acceptances and time deposits of U.S. banks (including savings
and loan associations) having total assets in excess of one billion dollars and
U.S. branches of foreign banks having total assets in excess of ten billion
dollars. The Fund may also invest in
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
4
<PAGE>
Eurodollar and Yankee bank obligations as discussed below.
Certificates of deposit represent an institution's obligation to repay funds
deposited with it that earn a specified interest rate over a given period.
Bankers' acceptances are negotiable obligations of a bank to pay a draft which
has been drawn by a customer and are usually backed by goods in international
trade. Time deposits are non-negotiable deposits with a banking institution that
earn a specified interest rate over a given period. Fixed time deposits, which
are payable at a stated maturity date and bear a fixed rate of interest,
generally may be withdrawn on demand by the Fund but may be subject to early
withdrawal penalties that could reduce the Fund's yield. Unless there is a
readily available market for them, time deposits that are subject to early
withdrawal penalties and that mature in more than seven days will be treated as
illiquid securities.
EURODOLLAR OR YANKEE OBLIGATIONS.
The Fund may invest in Eurodollar and Yankee bank obligations. Eurodollar bank
obligations are dollar-denominated certificates of deposit or time deposits
issued outside the U.S. capital markets by foreign branches of U.S. banks and by
foreign banks. Yankee bank obligations are dollar-denominated obligations issued
in the U.S. capital markets by foreign banks.
Eurodollar (and to a limited extent, Yankee) bank obligations are subject to
certain sovereign risks. One such risk is the possibility that a foreign
government might prevent dollar-denominated funds from flowing across its
borders. Other risks include: adverse political and economic developments in a
foreign country; the extent and quality of government regulation of financial
markets and institutions; the imposition of foreign withholding taxes; and
expropriation or nationalization of foreign issuers.
U.S. GOVERNMENT SECURITIES.
The Fund may invest without limit in U.S. Government Securities as described
below under "Janus Government Money Market Fund."
MUNICIPAL SECURITIES.
The Fund may invest in obligations of states, territories or possessions of the
United States and their subdivisions, authorities and corporations as described
below under "Janus Tax-Exempt Money Market Fund." These obligations may pay
interest that is exempt from federal income taxation.
JANUS GOVERNMENT MONEY MARKET FUND
Janus Government Money Market Fund pursues its objective by investing
exclusively in obligations issued and/or guaranteed as to principal and interest
by the United States government or by its agencies and instrumentalities and
repurchase agreements secured by such obligations.
U.S. GOVERNMENT SECURITIES.
U.S. Government Securities shall have the meaning set forth in the 1940 Act. The
1940 Act defines U.S. government securities to include securities issued or
guaranteed by the U.S. government, its agencies and instrumentalities and has
been interpreted to include repurchase agreements collateralized and municipal
securities refunded with escrowed U.S. government securities ("U.S. Government
Securities"). U.S. Government Securities in which the Fund may invest include
U.S. Treasury securities and obligations issued or guaranteed by U.S. government
agencies and instrumentalities that are backed by the full faith and credit of
the U.S. government, such as those guaranteed by the Small Business
Administration or issued by the Government National Mortgage Association. In
addition, U.S. Government Securities in which the Fund may invest include
securities supported primarily or solely by the creditworthiness of the issuer,
such as securities of the Federal National Mortgage Association, the Federal
Home Loan Mortgage Corporation and the Tennessee Valley Authority. There is no
guarantee that the U.S. government will support securities not backed by its
full faith and credit. Accordingly, although these securities have historically
involved little risk of loss of principal if held to maturity, they may involve
more risk than securities backed by the full faith and credit of the U.S.
government.
JANUS TAX-EXEMPT MONEY MARKET FUND
Janus Tax-Exempt Money Market Fund pursues its objective by investing primarily
in municipal securities whose interest is exempt from federal income taxes,
including the federal alternative minimum tax. Although the Fund will attempt to
invest substantially all of its assets in municipal securities whose interest is
exempt from federal income taxes, the Fund reserves the right to invest up to
20% of the value of its net assets in securities whose interest is federally
taxable. Additionally, when its portfolio manager is unable to locate investment
opportunities with desirable risk/reward characteristics, the Fund may invest
without limit in cash and cash equivalents, including obligations that may be
federally taxable (see "Taxable Investments").
MUNICIPAL SECURITIES.
The municipal securities in which the Fund may invest include municipal notes
and short-term municipal bonds. Municipal notes are generally used to provide
for the issuer's short-term capital needs and generally have maturities of 397
days or less. Examples include tax anticipation and revenue anticipation notes,
which generally are issued in anticipation of various seasonal revenues, bond
anticipation notes, construction loan notes and tax-exempt commercial paper.
Short-term municipal bonds may include "general obligation bonds," which are
secured by the issuer's pledge of its faith, credit and taxing power for payment
of principal and interest; "revenue bonds," which are generally paid from the
revenues of a particular facility or a specific excise tax or other source; and
"industrial development bonds," which are issued by or on behalf of public
authorities to provide funding for various privately operated industrial and
commercial facilities. The Fund may also invest in high quality participation
interests in municipal securities. A more detailed description of various types
of municipal securities is contained in Appendix B in the SAI.
When the assets and revenues of an agency, authority, instrumentality or other
political subdivision are separate from those of the
APRIL 14, 1995
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JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
5
<PAGE>
government creating the issuing entity and a security is backed only by the
assets and revenues of the issuing entity, that entity will be deemed to be the
sole issuer of the security. Similarly, in the case of an industrial development
bond backed only by the assets and revenues of the non-governmental issuer, the
non-governmental issuer will be deemed to be the sole issuer of the bond.
At times, the Fund may invest more than 25% of the value of its total assets in
tax-exempt securities that are related in such a way that an economic, business,
or political development or change affecting one such security could similarly
affect the other securities; for example, securities whose issuers are located
in the same state, or securities whose interest is derived from revenues of
similar type projects. The Fund may also invest more than 25% of its assets in
industrial development bonds or participation interests therein.
Yields on municipal securities are dependent on a variety of factors, including
the general conditions of the money market and of the municipal bond and
municipal note markets, the size of a particular offering, the maturity of the
obligation and the rating of the issue. The achievement of the Fund's investment
objective is dependent in part on the continuing ability of the issuers of
municipal securities in which the Fund invests to meet their obligations for the
payment of principal and interest when due. Obligations of issuers of municipal
securities are subject to the provisions of bankruptcy, insolvency and other
laws affecting the rights and remedies of creditors, such as the Bankruptcy
Reform Act of 1978, as amended. Therefore, the possibility exists that, as a
result of litigation or other conditions, the ability of any issuer to pay, when
due, the principal of and interest on its municipal securities may be materially
affected.
MUNICIPAL LEASES.
The Fund may invest in municipal leases or participation interests therein.
Municipal leases are municipal securities which may take the form of a lease or
an installment purchase or conditional sales contract. Municipal leases are
issued by state and local governments and authorities to acquire a wide variety
of equipment and facilities. Lease obligations may not be backed by the issuing
municipality's credit and may involve risks not normally associated with general
obligation bonds and other revenue bonds. For example, their interest may become
taxable if the lease is assigned and the holders may incur losses if the issuer
does not appropriate funds for the lease payment on an annual basis, which may
result in termination of the lease and possible default. Janus Capital may
determine that a liquid market exists for municipal lease obligations pursuant
to guidelines established by the Trustees.
TAXABLE INVESTMENTS.
As discussed above, although the Fund will attempt to invest substantially all
of its assets in municipal securities whose interest is exempt from federal
income tax, the Fund may under certain circumstances invest in certain
securities whose interest is subject to such taxation. These securities include:
(i) short-term obligations of the U.S. government, its agencies or
instrumentalities, (ii) certificates of deposit, bankers' acceptances and
interest-bearing savings deposits of banks having total assets of more than one
billion dollars and whose deposits are insured by the Federal Deposit Insurance
Corporation, (iii) commercial paper and (iv) repurchase agreements as described
below covering any of the securities described in items (i)-(iii) above or any
other obligations of the U.S. government, its agencies or instrumentalities.
COMMON INVESTMENT TECHNIQUES
PARTICIPATION INTERESTS.
The Funds may invest in participation interests in any type of security in which
the Funds may invest. A participation interest gives a Fund an undivided
interest in the underlying securities in the proportion that the Fund's
participation interest bears to the total principal amount of the underlying
securities. Participation interests usually carry a demand feature, as described
below, backed by a letter of credit or guarantee of the institution that issued
the interests permitting the holder to tender them back to the institution.
DEMAND FEATURES.
The Funds may invest in securities that are subject to puts and stand-by
commitments ("demand features"). Demand features give the Fund the right to
resell securities at specified periods prior to their maturity dates to the
seller or to some third party at an agreed-upon price or yield. Securities with
demand features may involve certain expenses and risks, including the inability
of the issuer of the instrument to pay for the securities at the time the
instrument is exercised, non-marketability of the instrument and differences
between the maturity of the underlying security and the maturity of the
instrument. Securities may cost more with demand features than without them.
Demand features can serve three purposes: to shorten the maturity of a variable
or floating rate security, to enhance the instrument's credit quality and to
provide a source of liquidity. Demand features are often issued by third party
financial institutions, generally domestic and foreign banks. Accordingly, the
credit quality and liquidity of the Funds' investments may be dependent in part
on the credit quality of the banks supporting the Funds' investments. This will
result in exposure to risks pertaining to the banking industry, including the
foreign banking industry. Brokerage firms and insurance companies also provide
certain liquidity and credit support.
VARIABLE AND FLOATING RATE SECURITIES.
The securities in which the Funds invest may have variable or floating rates of
interest. These securities pay interest at rates that are adjusted periodically
according to a specified formula, usually with reference to some interest rate
index or market interest rate. Securities with ultimate maturities of greater
than 397 days may be purchased only pursuant to Rule 2a-7. Under that Rule, only
those long-term instruments that have demand features which comply with certain
requirements and certain variable rate U.S. Government Securities may be
purchased. Similar to fixed rate debt instruments, variable and floating rate
instruments are subject to changes in value based on changes in market interest
rates or changes in the issuer's or guarantor's creditworthiness. The rate of
interest on securities purchased by a Fund
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
6
<PAGE>
may be tied to short-term Treasury or other government securities or indices on
securities that are permissible investments of the Funds, as well as other money
market rates of interest. The Funds will not purchase securities whose values
are tied to interest rates or indices that are not appropriate for the duration
and volatility standards of a money market fund.
MORTGAGE- AND ASSET-BACKED SECURITIES.
Janus Money Market Fund and Janus Government Money Market Fund may purchase
fixed or adjustable rate mortgage-backed securities issued by the Government
National Mortgage Association, Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation. In addition, Janus Money Market Fund may
purchase other asset-backed securities, including securities backed by
automobile loans, equipment leases or credit card receivables. These securities
directly or indirectly represent a participation in, or are secured by and
payable from, fixed or adjustable rate mortgage or other loans which may be
secured by real estate or other assets. Unlike traditional debt instruments,
payments on these securities include both interest and a partial payment of
principal. Prepayments of the principal of underlying loans may shorten the
effective maturities of these securities and may result in a Fund having to
reinvest proceeds at a lower interest rate.
REPURCHASE AGREEMENTS.
Each Fund may seek additional income by entering into repurchase agreements with
respect to obligations that could otherwise be purchased by a Fund. Repurchase
agreements are transactions in which a Fund purchases securities and
simultaneously commits to resell those securities to the seller at an
agreed-upon price on an agreed-upon future date. The resale price reflects a
market rate of interest that is not related to the coupon rate or maturity of
the purchased securities. If the seller of the securities underlying a
repurchase agreement fails to pay the agreed resale price on the agreed delivery
date, a Fund may incur costs in disposing of the collateral and may experience
losses if there is any delay in its ability to do so.
REVERSE REPURCHASE AGREEMENTS.
Each Fund may enter into reverse repurchase agreements. Reverse repurchase
agreements are transactions in which a Fund sells a security and simultaneously
commits to repurchase that security from the buyer at an agreed upon price on an
agreed upon future date. This technique will be used only for temporary or
emergency purposes, such as meeting redemption requests, or to earn additional
income on portfolio securities.
DELAYED DELIVERY SECURITIES.
Each Fund may purchase securities on a when-issued or delayed delivery basis.
Securities so purchased are subject to market price fluctuation from the time of
purchase but no interest on the securities accrues to a Fund until delivery and
payment for the securities take place. Accordingly, the value of the securities
on the delivery date may be more or less than the purchase price. Forward
commitments will be entered into only when a Fund has the intention of taking
possession of the securities, but a Fund may sell the securities before the
settlement date if deemed advisable.
BORROWING AND LENDING.
Each Fund may borrow money for temporary or emergency purposes in amounts up to
25% of its total assets. A Fund may not mortgage or pledge securities except to
secure permitted borrowings. As a fundamental policy, a Fund will not lend
securities or other assets if, as a result, more than 25% of its total assets
would be lent to other parties; however, the Funds do not currently intend to
engage in securities lending. Each Fund intends to seek permission from the SEC
to borrow money from or lend money to other funds that permit such transactions
and are advised by Janus Capital. There is no assurance that such permission
will be granted.
PORTFOLIO TURNOVER.
Because the Funds invest in securities with relatively short-term maturities,
each Fund is expected to have a high portfolio turnover rate. However, a high
turnover rate should not increase a Fund's costs because brokerage commissions
are not normally charged on the purchase and sale of money market instruments.
JOINT ACCOUNTS.
The Funds have requested exemptive relief from the SEC to permit the Funds and
other funds advised by Janus Capital to invest in certain money market
instruments through a joint account. Accordingly, the Funds may purchase such
instruments through a joint account if such relief is granted.
INVESTMENT ADVISER AND ADMINISTRATOR
INVESTMENT ADVISER
Each Fund has a separate Investment Advisory Agreement with Janus Capital, 100
Fillmore Street, Suite 300, Denver, Colorado 80206-4923. Janus Capital has
served as investment adviser to Janus Fund since 1970 and currently serves as
investment adviser to all of the Janus funds, as well as adviser or subadviser
to other mutual funds and individual, corporate, charitable and retirement
accounts. Kansas City Southern Industries, Inc., a publicly traded holding
company whose primary subsidiaries are engaged in transportation, information
processing and financial services ("KCSI"), owns approximately 83% of the
outstanding voting stock of Janus Capital. Thomas H. Bailey, the President and
Chairman of the Board of Janus Capital, owns approximately 12% of its voting
stock and, by agreement with KCSI, selects a majority of Janus Capital's Board.
Pursuant to the Investment Advisory Agreements, Janus Capital furnishes
continuous advice and recommendations concerning each Fund's investments. Each
of the Funds has agreed to compensate Janus Capital for its advisory services by
the monthly payment of a fee at the annual rate of 0.20% of the value of the
average daily net assets of each Fund. Until at least the period ending June 16,
1996, however, Janus Capital has agreed to waive a portion of its fee and
accordingly, the advisory fee of each Fund will initially be calculated at the
annual rate of 0.10% of the value of each Fund's average daily net assets.
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
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ADMINISTRATOR
Each of the Funds has also entered into an Administration Agreement with Janus
Capital, pursuant to which Janus Capital furnishes certain administrative,
compliance and accounting services for the Funds, pays the costs of printing
reports and prospectuses for existing shareholders, provides office space for
the Funds and pays the salaries, fees and expenses of all Fund officers and of
those Trustees who are affiliated with Janus Capital. Administrative services
provided by Janus Capital under the Administration Agreements include custody
and transfer agency services. Janus Capital is paid a fee, calculated daily and
paid monthly, at the annual rate of 0.15% of the value of the average daily net
assets of each Fund attributable to Shares for services rendered pursuant to the
Administration Agreements. At least for the period ending June 16, 1996,
however, Janus Capital has agreed to waive a portion of its fee and accordingly,
the administration fee paid by the Shares will initially be calculated at the
annual rate of 0.05% of the value of each Fund's average daily net assets
attributable to the Shares.
Each Fund pays all of its expenses not assumed by Janus Capital, including
auditing fees and independent Trustees' fees and expenses. For the fiscal year
ending October 31, 1995, Janus Capital has undertaken to reimburse the Funds for
audit fees and expenses and the fees and expenses of Fund Trustees who are not
affiliated with Janus Capital.
PORTFOLIO TRANSACTIONS
Purchases and sales of securities on behalf of each Fund are executed by brokers
and dealers selected by Janus Capital. Broker-dealers are selected on the basis
of their ability to obtain best price and execution for the Funds' transactions
and recognizing brokerage, research and other services provided to the Fund and
to Janus Capital. Janus Capital may also consider payments made by brokers
effecting transactions for a Fund i) to the Fund or ii) to other persons on
behalf of the Fund for services provided to the Fund for which it would be
obligated to pay. The Funds' Trustees have also authorized the Funds to place
portfolio transactions on an agency basis with a broker-dealer that is
affiliated with Janus Capital. Agency trades, if any, that are placed with such
affiliated party serve to reduce certain expenses of the Funds. The SAI further
explains the selection of broker-dealers.
PERSONAL INVESTING
Janus Capital permits investment personnel to purchase and sell securities for
their own accounts subject to Janus Capital's policy governing personal
investing. Janus Capital's policy requires investment and other personnel to
conduct their personal investment activities in a manner that Janus Capital
believes is not detrimental to the Funds and Janus Capital's other advisory
clients. See the SAI for more detailed information.
DISTRIBUTIONS AND TAXES
Dividends representing substantially all of the net investment income and any
net realized gains on sales of securities are declared daily, Saturdays, Sundays
and holidays included, and distributed on the last business day of each month.
If a month begins on a Saturday, Sunday or holiday, dividends for those days are
paid at the end of the preceding month. Distributions will be reinvested in
Shares of a Fund or wired to a predesignated bank account at the election of the
shareholder. If no election is made, all distributions will be reinvested in
additional Shares of a Fund.
Shares purchased by wire on a day on which the Funds calculate their net asset
value will receive that day's dividend if the purchase is effected at or prior
to 3:00 p.m. (New York time) for the Janus Money Market and Janus Government
Money Market Funds and 12:00 p.m. (New York time) for the Janus Tax-Exempt Money
Market Fund. Otherwise, such Shares begin to accrue dividends on the first
business day following receipt of the order.
Redemption orders effected on any particular day will generally receive
dividends declared through the day of redemption. However, redemptions made by
wire which are received prior to 3:00 p.m. (New York time) for the Janus Money
Market and Janus Government Money Market Funds and 12:00 p.m. (New York time)
for the Janus Tax-Exempt Money Market Fund will result in Shares being redeemed
that day. Proceeds of such a redemption will normally be sent to the
predesignated account on that day and that day's dividend will not be received.
Requests for redemptions made by wire which are received after 3:00 p.m. (12:00
p.m. for Janus Tax-Exempt Money Market Fund) will be processed on that day and
receive that day's dividend, but will not be wired until the following business
day.
Distributions for all of the Funds (except Janus Tax-Exempt Money Market Fund)
are taxable income and are subject to federal income tax (except for
shareholders exempt from income tax), whether such distributions are received in
cash or are reinvested in additional Shares. Full information regarding the tax
status of income dividends and any capital gains distributions will be mailed to
shareholders for tax purposes on or before January 31st of each year. Because
the Funds are money market funds, they do not anticipate making any capital
gains distributions.
Janus Tax-Exempt Money Market Fund anticipates that substantially all income
dividends it pays will be exempt from federal income tax. However, dividends
attributable to interest on taxable investments, together with distributions
from any net realized capital gains, are taxable. In addition, interest on
certain private activity bonds is a preference item for purposes of the
individual and corporate alternative minimum taxes. To the extent that the Fund
earns such income,
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
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shareholders who are subject to the alternative minimum tax must include such
income as a preference item. The Fund will advise shareholders of the percentage
of dividends, if any, subject to the alternative minimum tax.
Dividends and capital gains distributions may also be subject to state and local
taxes. In certain states some portion of dividends and distributions (depending
on the sources of the Fund's net income) of Janus Tax-Exempt Money Market Fund
may be exempt from state and local taxes. Shareholders should consult their own
tax advisor regarding exemption from any applicable state and local tax, as well
as the tax treatment of any dividends or distributions from the Shares.
The Funds intend to comply with provisions of the Internal Revenue Code
applicable to investment companies, and thus it is not expected that any of the
Funds will be required to pay any federal income or excise taxes. The SAI
further explains the Funds' tax status.
PERFORMANCE
The Shares may measure performance in several ways, including "yield,"
"effective yield," and "tax equivalent yield" (for Janus Tax-Exempt Money Market
Fund only). Yield is a way of showing the rate of income the Shares earn on
investments as a percentage of the Share price. Yield represents the income,
less expenses generated by an investment, in the Shares over a seven-day period
expressed as an annual percentage rate. Effective yield is similar in that it is
calculated over the same time frame, but instead the net investment income is
compounded and then annualized. Due to the compounding effect, the effective
yield will normally be higher than the yield.
Shares of Janus Tax-Exempt Money Market Fund may also quote tax-equivalent
yield, which shows the taxable yield an investor would have to earn before taxes
to equal such Shares' tax-free yield. A tax-equivalent yield is calculated by
dividing such Shares' tax-exempt yield by the result of one minus a stated
federal tax rate. Only that portion of the Fund's income that is tax-exempt is
adjusted in this calculation.
Performance figures are based upon historical results and are not intended to
indicate future performance.
From time to time in advertisements or sales material, the Funds may discuss the
Shares' performance ratings or other information as published by recognized
statistical or rating services, such as Lipper Analytical Services, Inc.,
IBC/Donoghue's Money Fund Report, Morningstar or by publications of general
interest, such as Forbes or Money. In addition, the Funds may compare the
Shares' yield to those of certain U.S. Treasury obligations or other money
market instruments.
MISCELLANEOUS INFORMATION
ORGANIZATION
Each Fund is an open-end management investment company registered under the 1940
Act as a series of the Trust, which was created on February 11, 1986. Each Fund
currently offers two classes of shares by separate prospectuses. The Shares
offered by this Prospectus are available only to institutional clients,
including corporations, foundations and trusts, meeting certain initial
investment requirements, while Investor Shares of each Fund are available to the
general public. Because the expenses of each class may differ, the performance
of each class is expected to differ. If you would like additional information,
please call Janus Extended Services at 1-800-29JANUS.
TRUSTEES
The Trustees oversee the business affairs of the Trust and are responsible for
major decisions relating to each Fund's investment objective and policies. The
Trustees delegate the day-to-day management of the Funds to the officers of the
Trust and meet at least quarterly to review the Funds' investment policies,
performance, expenses and other business affairs. In approving the use of a
single combined prospectus, the Trustees considered the possibility that one
Fund might be liable for misstatements in this Prospectus regarding information
concerning another Fund.
VOTING RIGHTS
The Trust is not required to hold annual shareholder meetings. However, special
meetings may be called for a specific class of shares, a specific Fund, or for
the Trust as a whole, for purposes such as electing or removing Trustees,
terminating or reorganizing the Trust, changing fundamental policies or voting
on matters when required by the 1940 Act. Separate votes are taken by a separate
class of shares only if a matter affects or requires the vote of just those
Shares. Shareholders are entitled to cast one vote for each Share they own.
CUSTODIAN, TRANSFER AGENT AND DISTRIBUTOR
United Missouri Bank, N.A., P.O. Box 419226, Kansas City, Missouri 64141-6226,
is the custodian of the Funds' assets. The custodian holds each Fund's assets in
safekeeping and collects and remits the income thereon subject to the
instructions of each Fund.
Janus Service Corporation, P.O. Box 173375, Denver, Colorado 80217-3375, a
wholly-owned subsidiary of Janus Capital, provides transfer agency and
shareholder services for the Funds.
Janus Distributors, Inc., 100 Fillmore Street, Suite 300, Denver, Colorado
80206-4923, a wholly-owned subsidiary of Janus Capital, is a distributor of the
Shares.
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
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SHAREHOLDER'S GUIDE
HOW TO OPEN AN ACCOUNT
ESTABLISHING YOUR ACCOUNT
The Application enclosed with this Prospectus describes the options available to
you as an institutional shareholder of the Funds. After reviewing the
Application carefully, complete, sign and forward it to:
Via Regular Mail Via Express Mail-Overnight Delivery
Janus Funds Janus Funds
P.O. Box 173375 100 Fillmore Street, Suite 300
Denver, CO 80217-3375 Denver, CO 80206-4923
Attn: Extended Services Attn: Extended Services
Do not include any purchase money with the Application. All purchases of Shares
should be effected by wire transfer. See "Purchasing Shares." The Funds reserve
the right to suspend the offering of the Shares for a period of time and to
reject any specific purchase request.
TAXPAYER IDENTIFICATION NUMBERS
On the Application, you must furnish the Funds with your taxpayer identification
number and state whether or not you are subject to backup withholding, certified
under penalties of perjury as prescribed by the Internal Revenue Code and
regulations. Dividends and capital gains distributions in an account without
proper certification will be subject to a 31% federal backup withholding. In
addition to the 31% backup withholding, redemption proceeds on established
accounts may be reduced by $50 to reimburse a Fund for any penalty that the
Internal Revenue Service imposes on that Fund for your failure to report a
correct taxpayer identification number to the Fund.
DISTRIBUTION OPTIONS
Shareholders have the option of having their dividends and distributions
automatically reinvested in Shares of a Fund or wired to a predesignated bank
account. If no election is made, all dividends and distributions will be
reinvested in additional Shares.
PURCHASING SHARES
You must establish a Fund account and receive an account number before making
purchases by wire. Requests to purchase Janus Money Market Fund and Janus
Government Money Market Fund received before 3:00 p.m. (New York time) will
receive dividends declared on the purchase date. Requests to purchase Janus
Tax-Exempt Money Market Fund must be received before 12:00 p.m. (New York time)
in order to receive the dividend declared on the day of purchase. In addition,
the Funds' transfer agent must receive payment in federal funds by 4:00 p.m.
(New York time). Purchase orders received after these times will receive the
dividend declared the following day.
WIRE INSTRUCTIONS:
Request your bank to transmit immediately available funds by wire for purchase
of Shares to the Funds' custodian bank as follows:
United Missouri Bank, N.A., Kansas City, Missouri
ABA # 101000695
BNF = Janus Money Market Funds Account # 9870610000
For credit to: Name of Shareholder:
Shareholder Account No.:
Name of Fund(s):
Complete information regarding your account must be included in all wire
instructions in order to facilitate prompt and accurate handling of investments.
Please contact the Janus Extended Services Team at 1-800-29JANUS when you intend
to make a wire purchase.
The Funds do not charge any fees for transactions by wire in Shares of the
Funds.
Once you have established a Fund account, you may purchase Shares for such
account or open additional accounts with other Funds at any time. The Funds
reserve the right to suspend the offering of Shares for a period of time and to
reject any specific purchase request. If you have any questions, please call
1-800-29JANUS.
MINIMUM INVESTMENT
The minimum initial investment in the Shares is $250,000. The Funds may, in
their discretion, waive this minimum under certain circumstances but, in such
event, the minimum must be reached within 90 days of opening the account.
NET ASSET VALUE
The net asset value ("NAV") of the Shares is determined at the close of the
regular trading session of the New York Stock Exchange (normally 4:00 p.m., New
York time) each day that the Exchange is open. NAV per share is determined by
dividing the total value of the securities and other assets, less liabilities,
by the total number of Shares outstanding. Portfolio securities are valued at
their amortized cost. Amortized cost valuation involves valuing an instrument at
its cost and thereafter assuming a constant amortization to maturity (or such
other date as permitted by Rule 2a-7) of any discount or premium. If fluctuating
interest rates cause the market value of a portfolio to deviate more than 1/2 of
1% from the value determined on the basis of amortized cost, the Trustees will
consider whether any action, such as adjusting the Share's NAV to reflect
current market conditions, should be initiated to prevent any material dilutive
effect on shareholders.
SHARE CERTIFICATES
Share certificates are not available for the Shares in order to maintain the
general liquidity that is representative of a money market fund and to help
facilitate transactions in shareholder accounts.
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
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HOW TO EXCHANGE SHARES
The Janus funds include several funds with a variety of investment objectives.
You may exchange your Shares for shares of any other Janus fund that is
available to the public and registered in your state of residence. There are
certain procedures which should be followed to effect the transfer of the entire
or partial balance in your Shares to one of the other Janus funds. The Funds
reserve the right to reject any exchange request and to modify or terminate the
exchange privilege at any time. For example, the Funds may reject exchanges from
accounts engaged in excessive trading (including market timing transactions)
that are detrimental to the Funds. If you would like more information regarding
this option, please call the Janus Extended Services Team at 1-800-29JANUS.
HOW TO REDEEM SHARES
PARTIAL OR COMPLETE REDEMPTIONS
You may redeem all or a portion of your Shares on any business day that the New
York Stock Exchange is open. Your Shares will be redeemed at the NAV next
calculated after your Fund has received your redemption request in good order
and meeting all the requirements of this Prospectus. Proceeds of such redemption
generally will be wired to your predesignated bank account as of the day of
redemption unless that day is a bank holiday, in which case, redemption proceeds
will be wired on the next bank business day.
IN WRITING
To redeem all or part of your Shares in writing, send a letter of instruction to
the following address:
Via Regular Mail Via Express Mail-Overnight Delivery
Janus Funds Janus Funds
P.O. Box 173375 100 Fillmore Street, Suite 300
Denver, CO 80217-3375 Denver, CO 80206-4923
Attn: Extended Services Attn: Extended Services
The letter should be on company letterhead and should specify the name of the
Fund, the number of Shares or dollars being redeemed, the account number,
appropriate wiring instructions, the name(s) on the account, your name and your
daytime telephone number. The letter must be signed by an authorized person
whose signature is on file with the Fund.
BY TELEPHONE
Shares may be redeemed by telephone. If a request for a redemption is received
by 3:00 p.m. (New York time) for the Janus Money Market Fund and Janus
Government Money Market Fund and by 12:00 p.m. (New York time) for the Janus
Tax-Exempt Money Market Fund, Shares will be redeemed and the redemption amount
wired in federal funds to the shareholder's predesignated bank account that day.
After 3:00 p.m. (12:00 p.m. for Janus Tax-Exempt Money Market Fund), a
redemption request will be processed at that day's NAV and will include that
day's dividends, but generally will not be wired until the next business day.
There is no fee for redemptions by wire.
BY A FUND
Your account may be terminated by your Fund if, due to the transfer or
redemption of Shares, the value of the remaining Shares in your account falls
below the minimum investment required to open a new account, or if you engage in
illegal or other conduct detrimental to the Funds. In the case of insufficient
account size, your Fund will notify you that you have 60 days to increase your
account to the minimum required before redeeming your account.
SPECIAL SHAREHOLDER SERVICES AND OTHER INFORMATION
PORTFOLIO INFORMATION
You may call 1-800-29JANUS by TouchTone(TM) telephone for access to certain
information regarding your account, including current yield and dividend rate
information, Monday through Friday from 7:00 a.m. to 10:00 p.m. (New York time).
TELEPHONE INSTRUCTIONS
You may initiate many transactions by telephone. The Funds and their agents will
not be responsible for any losses resulting from unauthorized transactions when
procedures designed to verify the identity of the caller are followed.
ACCOUNT ADDRESS AND NAME CHANGES
To change the address on your account, you may call 1-800-29JANUS or send a
written request signed by all registered owners of your account. Please include
the name of the Fund(s), the account number(s), the name(s) on the account and
both the old and new addresses. Within the first 10 days of an address change,
redemptions are permissible only if the redemption proceeds are wired to a
pre-designated bank account or you provide the Funds with appropriate corporate
resolutions changing wire instructions. Please call 1-800-29JANUS for additional
information.
To change the name on an account, the Shares must be transferred to a new
account. Such a change generally requires written instructions with the
guaranteed signatures of all registered owners, as well as an Application and
supporting legal documentation, if applicable. Please call 1-800-29JANUS for
additional information.
STATEMENTS AND REPORTS
Each shareholder will receive daily confirmations of purchases and redemptions
made in the Funds. On the last day of each month, the shareholder will receive a
statement reporting all purchases and redemptions made during that month, and
dividends paid during the month.
Twice each year you will receive the financial statements of the Funds,
including a statement listing portfolio securities. To reduce expenses, only one
copy of most reports (such as the Funds' Annual Report) may be mailed to all
accounts with the same tax identification number. Please call 1-800-29JANUS if
you need additional reports sent each time.
TEMPORARY SUSPENSION OF SERVICES
The Funds or their agents may temporarily suspend telephone transactions and
other shareholder services described in this Prospectus upon reasonable notice
or to the extent that any circumstance reasonably beyond the control of the
Funds or their agents materially hampers the provision of such services.
APRIL 14, 1995
AS SUPPLEMENTED SEPTEMBER 28, 1995
JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
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JANUS INSTITUTIONAL MONEY MARKET FUNDS PROSPECTUS
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[LOGO]
JANUS INVESTMENT FUND
100 Fillmore Street, Suite 300
Denver, CO 80206-4923
(800) 29JANUS
STATEMENT OF ADDITIONAL INFORMATION
April 14, 1995 as supplemented September 28, 1995
JANUS MONEY MARKET FUND
JANUS GOVERNMENT MONEY MARKET FUND
JANUS TAX-EXEMPT MONEY MARKET FUND
Institutional Shares
This Statement of Additional Information ("SAI") expands upon and supplements
the information contained in the current Prospectus for the Institutional Shares
(the "Shares") of Janus Money Market Fund, Janus Government Money Market Fund
and Janus Tax-Exempt Money Market Fund (individually, a "Fund" and,
collectively, the "Funds"). The Funds are each a separate series of Janus
Investment Fund, a Massachusetts business trust (the "Trust"). Each Fund
represents shares of beneficial interest in a separate portfolio of securities
and other assets with its own objective and policies, and is managed separately
by Janus Capital Corporation ("Janus Capital").
This SAI is not a Prospectus and should be read in conjunction with the
Prospectus dated April 14, 1995, as supplemented September 28, 1995, which is
incorporated by reference into this SAI and may be obtained from the Trust at
the above address. This SAI contains additional and more detailed information
about the Funds' operations and activities than the Prospectus.
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STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
Page
Investment Policies and Restrictions ...................................... 3
Types of Securities and Investment Techniques ............................. 4
Performance Data .......................................................... 7
Determination of Net Asset Value .......................................... 8
Investment Adviser and Administrator ...................................... 9
Custodian, Transfer Agent and Certain Affiliations ........................ 10
Portfolio Transactions and Brokerage ...................................... 11
Officers and Trustees ..................................................... 12
Purchase of Shares ........................................................ 13
Redemption of Shares ...................................................... 14
Shareholder Accounts ...................................................... 14
Dividends and Tax Status .................................................. 14
Principal Shareholders .................................................... 15
Miscellaneous Information ................................................. 15
Shares of the Trust ....................................................... 16
Voting Rights ............................................................. 16
Independent Accountants ................................................... 16
Registration Statement .................................................... 16
Financial Statements ...................................................... 17
Appendix A - Description of Securities Ratings ............................ 25
Appendix B - Description of Municipal Securities .......................... 27
2
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INVESTMENT POLICIES AND RESTRICTIONS
INVESTMENT OBJECTIVES
As discussed in the Prospectus, the investment objective of each of Janus
Money Market Fund and Janus Government Money Market Fund is to seek maximum
current income to the extent consistent with stability of capital. The
investment objective of Janus Tax-Exempt Money Market Fund is to seek maximum
current income that is exempt from federal income taxes to the extent consistent
with stability of capital. There can be no assurance that a Fund will achieve
its investment objective or maintain a stable net asset value of $1.00 per
share. The investment objectives of the Funds are not fundamental and may be
changed by the Trustees of the Trust (the "Trustees") without shareholder
approval.
INVESTMENT RESTRICTIONS APPLICABLE TO ALL FUNDS
As indicated in the Prospectus, each Fund has adopted certain fundamental
investment restrictions that cannot be changed without shareholder approval.
Shareholder approval means approval by the lesser of (i) more than 50% of the
outstanding voting securities of the Trust (or a particular Fund or particular
Shares if a matter affects just that Fund or those Shares), or (ii) 67% or more
of the voting securities present at a meeting if the holders of more than 50% of
the outstanding voting securities of the Trust (or a particular Fund or class of
Shares) are present or represented by proxy.
As used in the restrictions set forth below and as used elsewhere in this
SAI, the term "U.S. Government Securities" shall have the meaning set forth in
the Investment Company Act of 1940, as amended (the "1940 Act"). The 1940 Act
defines U.S. government securities as securities issued or guaranteed by the
United States government, its agencies or instrumentalities and has been
interpreted to include repurchase agreements collateralized and municipal
securities refunded with escrowed U.S. government securities ("U.S. Government
Securities").
The Funds have adopted the following fundamental policies:
(1) With respect to 75% of its assets, a Fund may not purchase a security
other than a U.S. Government Security, if, as a result, more than 5% of the
Fund's total assets would be invested in the securities of a single issuer or
the Fund would own more than 10% of the outstanding voting securities of any
single issuer. (As noted in the Prospectus, Janus Money Market Fund and Janus
Government Money Market Fund are currently subject to the greater
diversification standards of Rule 2a-7, which are not fundamental.)
(2) A Fund may not purchase securities if more than 25% of the value of a
Fund's total assets would be invested in the securities of issuers conducting
their principal business activities in the same industry; provided that: (i)
there is no limit on investments in U.S. Government Securities or in obligations
of domestic commercial banks (including U.S. branches of foreign banks subject
to regulations under U.S. laws applicable to domestic banks and, to the extent
that its parent is unconditionally liable for the obligation, foreign branches
of U.S. banks); (ii) this limitation shall not apply to a Fund's investments in
municipal securities; (iii) there is no limit on investments in issuers
domiciled in a single country; (iv) financial service companies are classified
according to the end users of their services (for example, automobile finance,
bank finance and diversified finance are each considered to be a separate
industry); and (v) utility companies are classified according to their services
(for example, gas, gas transmission, electric, and telephone are each considered
to be a separate industry).
(3) A Fund may not act as an underwriter of securities issued by others,
except to the extent that a Fund may be deemed an underwriter in connection with
the disposition of portfolio securities of such Fund.
(4) A Fund may not lend any security or make any other loan if, as a
result, more than 25% of a Fund's total assets would be lent to other parties
(but this limitation does not apply to purchases of commercial paper, debt
securities or repurchase agreements).
(5) A Fund may not purchase or sell real estate or any interest therein,
except that the Fund may invest in debt obligations secured by real estate or
interests therein or securities issued by companies that invest in real estate
or interests therein.
(6) A Fund may borrow money for temporary or emergency purposes (not for
leveraging) in an amount not exceeding 25% of the value of its total assets
(including the amount borrowed) less liabilities (other than borrowings). If
borrowings exceed 25% of the value of a Fund's total assets by reason of a
decline in net assets, the Fund will reduce its borrowings within three business
days to the extent necessary to
3
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comply with the 25% limitation. Reverse repurchase agreements or the segregation
of assets in connection with such agreements shall not be considered borrowing
for the purposes of this limit.
(7) Each Fund may, notwithstanding any other investment policy or
restriction (whether or not fundamental), invest all of its assets in the
securities of a single open-end management investment company with substantially
the same fundamental investment objectives, policies and restrictions as that
Fund.
Each Fund has adopted the following nonfundamental investment restrictions
that may be changed by the Trustees without shareholder approval:
(1) A Fund may not invest in securities or enter into repurchase agreements
with respect to any securities if, as a result, more than 10% of the Fund's net
assets would be invested in repurchase agreements not entitling the holder to
payment of principal within seven days and in other securities that are not
readily marketable ("illiquid investments"). The Trustees, or the Fund's
investment adviser acting pursuant to authority delegated by the Trustees, may
determine that a readily available market exists for certain securities such as
securities eligible for resale pursuant to Rule 144A under the Securities Act of
1933, or any successor to such rule, Section 4(2) commercial paper and municipal
lease obligations. Accordingly, such securities may not be subject to the
foregoing limitation.
(2) A Fund may not invest in the securities of another investment company,
except to the extent permitted by the 1940 Act.
(3) A Fund may not purchase securities on margin, or make short sales of
securities, except for short sales against the box and the use of short-term
credit necessary for the clearance of purchases and sales of portfolio
securities.
(4) A Fund may not invest more than 5% of the value of its total assets in
the securities of any issuer that has conducted continuous operations for less
than three years, including operations of predecessors, except that this shall
not affect the Fund's ability to invest in U.S. Government Securities, fully
collateralized debt obligations, municipal obligations, securities that are
rated by at least one nationally recognized statistical rating organization and
securities guaranteed as to principal and interest by an issuer in whose
securities the Fund could invest.
(5) A Fund may not pledge, mortgage, hypothecate or encumber any of its
assets except to secure permitted borrowings or in connection with permitted
short sales.
(6) A Fund may not invest directly in interests in oil and gas or interests
in other mineral exploration or development programs or leases; however, the
Fund may own debt securities of companies engaged in those businesses.
(7) A Fund may not invest in companies for the purpose of exercising
control of management.
For purposes of the Funds' restriction on investing in a particular
industry, the Funds will rely primarily on industry classifications as published
by Bloomberg L.P., subject to the exceptions noted in fundamental restriction
number two above. To the extent that such classifications are so broad that the
primary economic characteristics in a single class are materially different, the
Funds may further classify issuers in accordance with industry classifications
as published by the Securities and Exchange Commission.
TYPES OF SECURITIES AND INVESTMENT TECHNIQUES
Each of the Funds may invest only in "eligible securities" as defined in
Rule 2a-7 adopted under the 1940 Act. Generally, an eligible security is a
security that (i) is denominated in U.S. dollars and has a remaining maturity of
397 days or less (as calculated pursuant to Rule 2a-7); (ii) is rated, or is
issued by an issuer with short-term debt outstanding that is rated, in one of
the two highest rating categories by any two nationally recognized statistical
rating organizations ("NRSROs") or, if only one NRSRO has issued a rating, by
that NRSRO (the "Requisite NRSROs") or is unrated and of comparable quality to a
rated security, as determined by Janus Capital; and (iii) has been determined by
Janus Capital to present minimal credit risks pursuant to procedures approved by
the Trustees. In addition, the Funds will maintain a dollar-weighted average
portfolio maturity of 90 days or less. A description of the ratings of some
NRSROs appears in Appendix A.
Under Rule 2a-7, a Fund may not invest more than five percent of its total
assets in the securities of any one issuer other than U.S. Government
Securities, provided that in certain cases a Fund may invest more than 5% of its
assets in a single issuer for a period of up to three business days. In the case
of Janus Tax-Exempt Money Market Fund, up to 25% of its assets may be invested
without regard to the foregoing limitations.
4
<PAGE>
Pursuant to Rule 2a-7, each Fund (except Janus Tax-Exempt Money Market
Fund) will invest at least 95% of its total assets in "first-tier" securities.
First-tier securities are eligible securities that are rated, or are issued by
an issuer with short-term debt outstanding that is rated, in the highest rating
category by the Requisite NRSROs or are unrated and of comparable quality to a
rated security. In addition, a Fund may invest in "second-tier" securities which
are eligible securities that are not first-tier securities. However, a Fund
(except for Janus Tax-Exempt Money Market Fund) may not invest in a second-tier
security if immediately after the acquisition thereof the Fund would have
invested more than (i) the greater of one percent of its total assets or one
million dollars in second-tier securities issued by that issuer, or (ii) five
percent of its total assets in second-tier securities.
The following discussion of types of securities in which the Funds may
invest supplements and should be read in conjunction with the Prospectus.
PARTICIPATION INTERESTS
Each Fund may purchase participation interests in loans or securities in
which the Funds may invest directly. Participation interests are generally
sponsored or issued by banks or other financial institutions. A participation
interest gives a Fund an undivided interest in the underlying loans or
securities in the proportion that the Fund's interest bears to the total
principal amount of the underlying loans or securities. Participation interests,
which may have fixed, floating or variable rates, may carry a demand feature
backed by a letter of credit or guarantee of a bank or institution permitting
the holder to tender them back to the bank or other institution. For certain
participation interests, a Fund will have the right to demand payment, on not
more than seven days' notice, for all or a part of the Fund's participation
interest. The Funds intend to exercise any demand rights they may have upon
default under the terms of the loan or security, to provide liquidity or to
maintain or improve the quality of the Funds' investment portfolio. A Fund will
only purchase participation interests that Janus Capital determines present
minimal credit risks.
VARIABLE AND FLOATING RATE NOTES
Janus Money Market Fund also may purchase variable and floating rate demand
notes of corporations and other entities, which are unsecured obligations
redeemable upon not more than 30 days' notice. These obligations include master
demand notes that permit investment of fluctuating amounts at varying rates of
interest pursuant to direct arrangements with the issuer of the instrument. The
issuer of these obligations often has the right, after a given period, to prepay
the outstanding principal amount of the obligations upon a specified number of
days' notice. These obligations generally are not traded, nor generally is there
an established secondary market for these obligations. To the extent a demand
note does not have a seven day or shorter demand feature and there is no readily
available market for the obligation, it is treated as an illiquid security.
MORTGAGE- AND ASSET-BACKED SECURITIES
The Funds may invest in mortgage-backed securities, which represent an
interest in a pool of mortgages made by lenders such as commercial banks,
savings and loan institutions, mortgage bankers, mortgage brokers and savings
banks. Mortgage-backed securities may be issued by governmental or
government-related entities or by non-governmental entities such as banks,
savings and loan institutions, private mortgage insurance companies, mortgage
bankers and other secondary market issuers.
Interests in pools of mortgage-backed securities differ from other forms of
debt securities which normally provide for periodic payment of interest in fixed
amounts with principal payments at maturity or specified call dates. In
contrast, mortgage-backed securities provide periodic payments which consist of
interest and, in most cases, principal. In effect, these payments are a
"pass-through" of the periodic payments and optional prepayments made by the
individual borrowers on their mortgage loans, net of any fees paid to the issuer
or guarantor of such securities. Additional payments to holders of
mortgage-backed securities are caused by prepayments resulting from the sale of
the underlying residential property, refinancing or foreclosure, net of fees or
costs which may be incurred.
As prepayment rates of individual pools of mortgage loans vary widely, it
is not possible to predict accurately the average life of a particular security.
Although mortgage-backed securities are issued with stated maturities of up to
forty years, unscheduled or early payments of principal and interest on the
underlying mortgages may shorten considerably the effective maturities.
Mortgage-backed securities may have
5
<PAGE>
varying assumptions for average life. The volume of prepayments of principal on
a pool of mortgages underlying a particular security will influence the yield of
that security, and the principal returned to a Fund may be reinvested in
instruments whose yield may be higher or lower than that which might have been
obtained had the prepayments not occurred. When interest rates are declining,
prepayments usually increase, with the result that reinvestment of principal
prepayments will be at a lower rate than the rate applicable to the original
mortgage-backed security.
The Funds may invest in mortgage-backed securities that are issued by
agencies or instrumentalities of the U.S. government. The Government National
Mortgage Association ("GNMA") is the principal federal government guarantor of
mortgage-backed securities. GNMA is a wholly-owned U.S. government corporation
within the Department of Housing and Urban Development. GNMA Certificates are
debt securities which represent an interest in one mortgage or a pool of
mortgages which are insured by the Federal Housing Administration or the Farmers
Home Administration or are guaranteed by the Veterans Administration. The Funds
may also invest in pools of conventional mortgages which are issued or
guaranteed by agencies of the U.S. government. GNMA pass-through securities are
considered to be riskless with respect to default in that (i) the underlying
mortgage loan portfolio is comprised entirely of government-backed loans and
(ii) the timely payment of both principal and interest on the securities is
guaranteed by the full faith and credit of the U.S. government, regardless of
whether or not payments have been made on the underlying mortgages. GNMA
pass-through securities are, however, subject to the same market risk as
comparable debt securities. Therefore, the market value of a Fund's GNMA
securities can be expected to fluctuate in response to changes in prevailing
interest rate levels.
Residential mortgage loans are pooled also by the Federal Home Loan
Mortgage Corporation ("FHLMC"). FHLMC is a privately managed, publicly chartered
agency created by Congress in 1970 for the purpose of increasing the
availability of mortgage credit for residential housing. FHLMC issues
participation certificates ("PCs") which represent interests in mortgages from
FHLMC's national portfolio. The mortgage loans in FHLMC's portfolio are not U.S.
government backed; rather, the loans are either uninsured with loan-to-value
ratios of 80% or less, or privately insured if the loan-to-value ratio exceeds
80%. FHLMC guarantees the timely payment of interest and ultimate collection of
principal on FHLMC PCs; the U.S. government does not guarantee any aspect of
FHLMC PCs.
The Federal National Mortgage Association ("FNMA") is a
government-sponsored corporation owned entirely by private shareholders. It is
subject to general regulation by the Secretary of Housing and Urban Development.
FNMA purchases residential mortgages from a list of approved seller/servicers
which include savings and loan associations, savings banks, commercial banks,
credit unions and mortgage bankers. FNMA guarantees the timely payment of
principal and interest on the pass-through securities issued by FNMA; the U.S.
government does not guarantee any aspect of the FNMA pass-through securities.
The Funds may also invest in privately-issued mortgage-backed securities to
the extent permitted by their investment restrictions. Mortgage-backed
securities offered by private issuers include pass-through securities comprised
of pools of conventional residential mortgage loans; mortgage-backed bonds which
are considered to be debt obligations of the institution issuing the bonds and
which are collateralized by mortgage loans; and collateralized mortgage
obligations ("CMOs") which are collateralized by mortgage-backed securities
issued by GNMA, FHLMC or FNMA or by pools of conventional mortgages.
Asset-backed securities represent direct or indirect participation in, or
are secured by and payable from, assets other than mortgage-backed assets such
as motor vehicle installment sales contracts, installment loan contracts, leases
of various types of real and personal property and receivables from revolving
credit agreements (credit cards). Asset-backed securities have yield
characteristics similar to those of mortgage-backed securities and, accordingly,
are subject to many of the same risks.
REVERSE REPURCHASE AGREEMENTS
Reverse repurchase agreements are transactions in which a Fund sells a
security and simultaneously commits to repurchase that security from the buyer
at an agreed upon price on an agreed upon future date. The resale price in a
reverse repurchase agreement reflects a market rate of interest that is not
related to the coupon rate or maturity of the sold security. For certain demand
agreements, there is no agreed upon repurchase date and interest payments are
calculated daily, often based upon the prevailing overnight repurchase rate. The
Funds will use the proceeds of reverse repurchase agreements only to satisfy
unusually heavy redemption requests or for other temporary or emergency purposes
without the necessity of selling portfolio securities or to earn additional
income on portfolio securities.
6
<PAGE>
Generally, a reverse repurchase agreement enables the Fund to recover for
the term of the reverse repurchase agreement all or most of the cash invested in
the portfolio securities sold and to keep the interest income associated with
those portfolio securities. Such transactions are only advantageous if the
interest cost to the Fund of the reverse repurchase transaction is less than the
cost of obtaining the cash otherwise. In addition, interest costs on the money
received in a reverse repurchase agreement may exceed the return received on the
investments made by a Fund with those monies.
WHEN-ISSUED AND DELAYED DELIVERY SECURITIES
Each Fund may purchase securities on a when-issued or delayed delivery
basis. A Fund will enter into such transactions only when it has the intention
of actually acquiring the securities. To facilitate such acquisitions, the
Funds' custodian will segregate cash or high quality liquid assets in an amount
at least equal to such commitments. On delivery dates for such transactions, the
Fund will meet its obligations from maturities, sales of the segregated
securities or from other available sources of cash. If a Fund chooses to dispose
of the right to acquire a when-issued security prior to its acquisition, it
could, as with the disposition of any other portfolio obligation, incur a gain
or loss due to market fluctuation. At the time a Fund makes the commitment to
purchase securities on a when-issued or delayed delivery basis, it will record
the transaction as a purchase and thereafter reflect the value of such
securities in determining its net asset value.
MUNICIPAL LEASES
Janus Money Market Fund and Janus Tax-Exempt Money Market Fund may invest
in municipal leases. Municipal leases frequently have special risks not normally
associated with general obligation or revenue bonds. Leases and installment
purchase or conditional sale contracts (which normally provide for title to the
leased asset to pass eventually to the government issuer) have evolved as a
means for governmental issuers to acquire property and equipment without meeting
the constitutional and statutory requirements for the issuance of debt. The
debt-issuance limitations of many state constitutions and statutes are deemed to
be inapplicable because of the inclusion in many leases or contracts of
"non-appropriation" clauses that provide that the governmental issuer has no
obligation to make future payments under the lease or contract unless money is
appropriated for such purpose by the appropriate legislative body on a yearly or
other periodic basis. A Fund will only purchase municipal leases subject to a
non-appropriation clause when the payment of principal and accrued interest is
backed by an unconditional irrevocable letter of credit, or guarantee of a bank
or other entity that meets the criteria described in the Prospectus under
"Taxable Investments."
In evaluating municipal lease obligations, Janus Capital will consider such
factors as it deems appropriate, including: (a) whether the lease can be
canceled; (b) the ability of the lease obligee to direct the sale of the
underlying assets; (c) the general creditworthiness of the lease obligor; (d)
the likelihood that the municipality will discontinue appropriating funding for
the leased property in the event such property is no longer considered essential
by the municipality; (e) the legal recourse of the lease obligee in the event of
such a failure to appropriate funding; (f) whether the security is backed by a
credit enhancement such as insurance; and (g) any limitations which are imposed
on the lease obligor's ability to utilize substitute property or services other
than those covered by the lease obligation. If a lease is backed by an
unconditional letter of credit or other unconditional credit enhancement, then
Janus Capital may determine that a lease is an eligible security solely on the
basis of its evaluation of the credit enhancement.
Municipal leases, like other municipal debt obligations, are subject to the
risk of non-payment. The ability of issuers of municipal leases to make timely
lease payments may be adversely impacted in general economic downturns and as
relative governmental cost burdens are allocated and reallocated among federal,
state and local governmental units. Such non-payment would result in a reduction
of income to the Funds, and could result in a reduction in the value of the
municipal lease experiencing non-payment and a potential decrease in the net
asset value of a Fund.
PERFORMANCE DATA
A Fund may provide current annualized and effective annualized yield
quotations based on its daily dividends. These quotations may from time to time
be used in advertisements, shareholder reports or other communications to
shareholders. All performance information supplied by the Funds in advertising
is historical and is not intended to indicate future returns.
7
<PAGE>
In performance advertising, the Funds may compare their Shares' performance
information with data published by independent evaluators such as Morningstar,
Inc., Lipper Analytical Services, Inc., or CDC/Wiesenberger, Donoghue's Money
Fund Report or other companies which track the investment performance of
investment companies ("Fund Tracking Companies"). The Funds may also compare
their Shares' performance information with the performance of recognized stock,
bond and other indices, including but not limited to the Municipal Bond Buyers
Indices, the Salomon Brothers Bond Index, the Lehman Bond Index, the Standard &
Poor's 500 Composite Stock Price Index, the Dow Jones Industrial Average, U.S.
Treasury bonds, bills or notes and changes in the Consumer Price Index as
published by the U.S. Department of Commerce. The Funds may refer to general
market performance over past time periods such as those published by Ibbotson
Associates (for instance, its "Stocks, Bonds, Bills and Inflation Yearbook").
The Funds may also refer in such materials to mutual fund performance rankings
and other data published by Fund Tracking Companies. Performance advertising may
also refer to discussions of the Funds and comparative mutual fund data and
ratings reported in independent periodicals, such as newspapers and financial
magazines.
Any current yield quotation of the Shares which is used in such a manner as
to be subject to the provisions of Rule 482(d) under the Securities Act of 1933,
as amended, shall consist of an annualized historical yield, carried at least to
the nearest hundredth of one percent, based on a specific seven calendar day
period. Current yield shall be calculated by (a) determining the net change
during a seven calendar day period in the value of a hypothetical account having
a balance of one Share at the beginning of the period, (b) dividing the net
change by the value of the account at the beginning of the period to obtain a
base period return, and (c) multiplying the quotient by 365/7 (i.e.,
annualizing). For this purpose, the net change in account value will reflect the
value of additional Shares purchased with dividends declared on the original
Share and dividends declared on both the original Share and any such additional
Shares, but will not reflect any realized gains or losses from the sale of
securities or any unrealized appreciation or depreciation on portfolio
securities. In addition, the Shares may advertise effective yield quotations.
Effective yield quotations are calculated by adding 1 to the base period return,
raising the sum to a power equal to 365/7, and subtracting 1 from the result
(i.e., compounding).
Janus Tax-Exempt Money Market Fund's tax equivalent yield is the rate an
investor would have to earn from a fully taxable investment in order to equal
such Shares' yield after taxes. Tax equivalent yields are calculated by dividing
Janus Tax-Exempt Money Market Fund's yield by one minus the stated federal or
combined federal and state tax rate. If only a portion of the Shares' yield is
tax-exempt, only that portion is adjusted in the calculation.
The Shares' current yield and effective yield for the seven-day period
ended August 31, 1995 is shown below:
<TABLE>
<CAPTION>
Seven-day Effective
Fund Name Yield Seven-day Yield
- --------- ----- ---------------
<S> <C> <C>
Janus Money Market Fund - Institutional Shares 5.82% 5.99%
Janus Government Money Market Fund - Institutional Shares 5.70% 5.87%
Janus Tax-Exempt Money Market Fund - Institutional Shares* 3.68% 3.75%
</TABLE>
*Janus Tax-Exempt Money Market Fund Institutional Shares' tax-equivalent yield
for the seven-day period ended August 31, 1995 was 5.11%.
Although published yield information is useful to investors in reviewing a
Fund's performance, investors should be aware that the Fund's yield fluctuates
from day to day and that the Fund's yield for any given period is not an
indication or representation by the Fund of future yields or rates of return on
the Shares. Also, Processing Organizations may charge their customers direct
fees in connection with an investment in a Fund, which will have the effect of
reducing the Fund's net yield to those shareholders. The yield on a class of
Shares is not fixed or guaranteed, and an investment in the Shares is not
insured. Accordingly, yield information may not necessarily be used to compare
Shares with investment alternatives which, like money market instruments or bank
accounts, may provide a fixed rate of interest. In addition, because investments
in the Funds are not insured or guaranteed, yield on the Shares may not
necessarily be used to compare the Shares with investment alternatives which are
insured or guaranteed.
DETERMINATION OF NET ASSET VALUE
Pursuant to the rules of the Securities and Exchange Commission, the
Trustees have established procedures to stabilize each Fund's net asset value at
$1.00 per Share. These procedures include a review
8
<PAGE>
of the extent of any deviation of net asset value per Share as a result of
fluctuating interest rates, based on available market rates, from the Fund's
$1.00 amortized cost price per Share. Should that deviation exceed 1/2 of 1%,
the Trustees will consider whether any action should be initiated to eliminate
or reduce material dilution or other unfair results to shareholders. Such action
may include redemption of Shares in kind, selling portfolio securities prior to
maturity, reducing or withholding dividends and utilizing a net asset value per
Share as determined by using available market quotations. Each Fund i) will
maintain a dollar-weighted average portfolio maturity of 90 days or less; ii)
will not purchase any instrument with a remaining maturity greater than 397 days
or subject to a repurchase agreement having a duration of greater than 397 days;
iii) will limit portfolio investments, including repurchase agreements, to those
U.S. dollar-denominated instruments that Janus Capital has determined present
minimal credit risks pursuant to procedures established by the Trustees; and iv)
will comply with certain reporting and recordkeeping procedures. The Trust has
also established procedures to ensure that portfolio securities meet the Funds'
high quality criteria.
INVESTMENT ADVISER AND ADMINISTRATOR
As stated in the Prospectus, each Fund has an Investment Advisory Agreement
with Janus Capital, 100 Fillmore Street, Suite 300, Denver, Colorado 80206-4923.
Each Advisory Agreement provides that Janus Capital will furnish continuous
advice and recommendations concerning the Funds' investments. The Funds have
each agreed to compensate Janus Capital for its advisory services by the monthly
payment of an advisory fee at the annual rate of .20% of the average daily net
assets of each Fund. However, Janus Capital has agreed to waive .10% of the
advisory fee through June 16, 1996. In addition, the Funds pay brokerage
commissions and dealer spreads and other expenses in connection with the
execution of portfolio transactions.
On behalf of the Shares, each of the Funds has also entered into an
Administration Agreement with Janus Capital. Under the terms of the
Administration Agreements, each of the Funds has agreed to compensate Janus
Capital for administrative services at the annual rate of .15% of the value of
the average daily net assets of the Shares for certain services, including
custody, transfer agent fees and expenses, legal fees not related to litigation,
accounting expenses, net asset value determination and fund accounting,
recordkeeping, and blue sky registration and monitoring services, registration
fees, expenses of shareholders' meetings and reports to shareholders, costs of
preparing, printing and mailing the Shares' Prospectuses and Statements of
Additional Information to current shareholders, and other costs of complying
with applicable laws regulating the sale of Shares. Each Fund will pay those
expenses not assumed by Janus Capital, including interest and taxes, fees and
expenses of Trustees who are not affiliated with Janus Capital, audit fees and
expenses, and extraordinary costs. For at least the period ending June 16, 1996,
Janus Capital has agreed to waive a portion of the administration fee, and
accordingly the effective rate for calculating the administration fee payable by
the Shares will be .05% for that period. For the Funds' fiscal year ending
October 31, 1995, Janus Capital has undertaken to reimburse the Funds for audit
fees and expenses and the fees and expenses of Trustees who are not affiliated
with Janus Capital.
The following table summarizes the advisory fees and administration fees
paid by the Shares for the period from April 14, 1995 to August 31, 1995:
<TABLE>
<CAPTION>
Advisory Fees Administration
Fund Name Prior to Waiver Fees
- --------- --------------- ----
<S> <C> <C>
Janus Money Market Fund - Institutional Shares $60,260 $30,130
Janus Government Money Market Fund - Institutional Shares $ 7,527 $ 3,763
Janus Tax-Exempt Money Market Fund - Institutional Shares $ 4 $ 1
</TABLE>
The Advisory Agreements for each Fund became effective on December 9, 1994
and will continue in effect until June 16, 1996, and thereafter from year to
year so long as such continuance is approved annually by a majority of the
Trustees who are not parties to the Advisory Agreements or interested persons of
any such party, and by either a majority of the Funds' outstanding voting shares
or the Trustees. Each Advisory Agreement i) may be terminated without the
payment of any penalty by any Fund or Janus Capital on 60 days' written notice;
ii) terminates automatically in the event of its assignment; and iii) generally,
may not be amended without the approval of a majority of the Trustees of the
affected Fund, including the Trustees who are not interested persons of that
Fund or Janus Capital and, to the extent required by the 1940 Act, the vote of a
majority of the outstanding voting securities of that Fund.
Janus Capital also performs investment advisory services for other mutual
funds, and for individual, charitable, corporate and retirement accounts.
Investment decisions for each account managed by Janus
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<PAGE>
Capital, including the Funds, are made independently from those for any other
account that is or may in the future become managed by Janus Capital or its
affiliates. If, however, a number of accounts managed by Janus Capital are
contemporaneously engaged in the purchase or sale of the same security, the
orders may be aggregated and/or the transactions may be averaged as to price and
allocated equitably to each account. In some cases, this policy might adversely
affect the price paid or received by an account or the size of the position
obtained or liquidated for an account.
Each account managed by Janus Capital has its own investment objective and
is managed in accordance with that objective by a particular portfolio manager
or team of portfolio managers. As a result, from time to time two or more
different managed accounts may pursue divergent investment strategies with
respect to investments or categories of investments.
As indicated in the Prospectus, Janus Capital permits investment and other
personnel to purchase and sell securities for their own accounts in accordance
with a Janus Capital policy regarding personal investing by directors, officers
and employees of Janus Capital and the Funds. The policy requires investment
personnel and officers of Janus Capital, inside directors of Janus Capital and
the Funds and other designated persons deemed to have access to current trading
information to pre-clear all transactions in securities not otherwise exempt
under the policy. Requests for trading authority will be denied when, among
other reasons, the proposed personal transaction would be contrary to the
provisions of the policy or would be deemed to adversely affect any transaction
then known to be under consideration for or to have been effected on behalf of
any client account, including the Funds.
In addition to the pre-clearance requirement described above, the policy
subjects investment personnel, officers and directors/Trustees of Janus Capital
and the Funds to various trading restrictions and reporting obligations. All
reportable transactions are reviewed for compliance with Janus Capital's policy.
Those persons also may be required under certain circumstances to forfeit their
profits made from personal trading.
The provisions of the policy are administered by and subject to exceptions
authorized by Janus Capital.
Kansas City Southern Industries, Inc., a publicly traded holding company
whose primary subsidiaries are engaged in transportation, information processing
and financial services ("KCSI"), owns approximately 83% of Janus Capital. Thomas
H. Bailey, the President and Chairman of the Board of Janus Capital, owns
approximately 12% of its voting stock and, by agreement with KCSI, selects a
majority of Janus Capital's Board.
CUSTODIAN, TRANSFER AGENT AND CERTAIN AFFILIATIONS
United Missouri Bank, N.A., P.O. Box 419226, Kansas City, Missouri
64141-6226, is the Funds' custodian. The custodian holds the Funds' assets in
safekeeping and collects and remits the income thereon, subject to the
instructions of each Fund.
Janus Service Corporation ("Janus Service"), P.O. Box 173375, Denver,
Colorado 80217-3375, a wholly-owned subsidiary of Janus Capital, is the Funds'
transfer agent. Janus Service provides certain other administrative,
recordkeeping and shareholder relations services to the Funds. The Funds do not
pay Janus Service a fee.
Janus Distributors, Inc. ("Janus Distributors"), 100 Fillmore Street, Suite
300, Denver, Colorado 80206, a wholly-owned subsidiary of Janus Capital, is a
distributor of the Funds. Janus Distributors is registered as a broker-dealer
under the Securities Exchange Act of 1934 (the "Exchange Act") and is a member
of the National Association of Securities Dealers, Inc. Janus Distributors acts
as the agent of the Funds in connection with the sale of their shares in all
states in which the shares are registered and in which Janus Distributors is
qualified as a broker-dealer. Under the Distribution Agreement, Janus
Distributors continuously offers the Funds' shares and accepts orders at net
asset value. No sales charges are paid by investors. Promotional expenses in
connection with offers and sales of shares are paid by Janus Capital.
Janus Capital also may make payments to selected broker-dealer firms or
institutions which were instrumental in the acquisition of shareholders for the
Funds or which performed services with respect to shareholder accounts. The
minimum aggregate size required for eligibility for such payments, and the
factors in selecting the broker-dealer firms and institutions to which they will
be made, are determined from time to time by Janus Capital.
10
<PAGE>
PORTFOLIO TRANSACTIONS AND BROKERAGE
Decisions as to the assignment of portfolio business for the Funds and
negotiation of its commission rates are made by Janus Capital whose policy is to
obtain the "best execution" (prompt and reliable execution at the most favorable
security price) of all portfolio transactions. The Advisory Agreements
specifically provide that in placing portfolio transactions for the Funds, Janus
Capital may agree to pay brokerage commissions for effecting a securities
transaction in an amount higher than another broker or dealer would have charged
for effecting that transaction as authorized, under certain circumstances, by
the Exchange Act.
In selecting brokers and dealers and in negotiating commissions, Janus
Capital considers a number of factors, including but not limited to: Janus
Capital's knowledge of currently available negotiated commission rates or prices
of securities currently available and other current transaction costs; the
nature of the security being traded; the size and type of the transaction; the
nature and character of the markets for the security to be purchased or sold;
the desired timing of the trade; the activity existing and expected in the
market for the particular security; confidentiality; the quality of the
execution, clearance and settlement services; financial stability of the broker
or dealer; the existence of actual or apparent operational problems of any
broker or dealer; and research products or services provided. In recognition of
the value of the foregoing factors, Janus Capital may place portfolio
transactions with a broker or dealer with whom it has negotiated a commission
that is in excess of the commission another broker or dealer would have charged
for effecting that transaction if Janus Capital determines in good faith that
such amount of commission was reasonable in relation to the value of the
brokerage and research provided by such broker or dealer viewed in terms of
either that particular transaction or of the overall responsibilities of Janus
Capital. Research may include furnishing advice, either directly or through
publications or writings, as to the value of securities, the advisability of
purchasing or selling specific securities and the availability of securities or
purchasers or sellers of securities; furnishing seminars, information, analyses
and reports concerning issuers, industries, securities, trading markets and
methods, legislative developments, changes in accounting practices, economic
factors and trends and portfolio strategy; access to research analysts,
corporate management personnel, industry experts, economists and government
officials; comparative performance evaluation and technical measurement services
and quotation services, and products and other services (such as third party
publications, reports and analyses, and computer and electronic access,
equipment, software, information and accessories that deliver, process or
otherwise utilize information, including the research described above) that
assist Janus Capital in carrying out its responsibilities. Research received
from brokers or dealers is supplemental to Janus Capital's own research efforts.
For the period from April 14, 1995 to August 31, 1995, the Funds did not
incur any brokerage commissions.
Janus Capital may use research products and services in servicing other
accounts in addition to the Funds. If Janus Capital determines that any research
product or service has a mixed use, such that it also serves functions that do
not assist in the investment decision-making process, Janus Capital may allocate
the costs of such service or product accordingly. Only that portion of the
product or service that Janus Capital determines will assist it in the
investment decision-making process may be paid for in brokerage commission
dollars. Such allocation may create a conflict of interest for Janus Capital.
The Advisory Agreements also authorize Janus Capital to consider sales of
Shares by a broker-dealer or the recommendation of a broker-dealer to its
customers that they purchase Shares as a factor in the selection of
broker-dealers to execute Fund portfolio transactions. Janus Capital may also
consider payments made by brokers effecting transactions for a Fund i) to the
Fund or ii) to other persons on behalf of the Fund for services provided to the
Fund for which it would be obligated to pay. In placing portfolio business with
such broker-dealers, Janus Capital will seek the best execution of each
transaction.
When the Funds purchase or sell a security in the over-the-counter market,
the transaction takes place directly with a principal market-maker, without the
use of a broker, except in those circumstances where in the opinion of Janus
Capital better prices and executions will be achieved through the use of a
broker.
11
<PAGE>
OFFICERS AND TRUSTEES
The following are the names of the Trustees and officers of the Trust,
together with a brief description of their principal occupations during the last
five years.
Thomas H. Bailey*# - Trustee, Chairman and President
100 Fillmore Street, Suite 300
Denver, CO 80206-4923
Trustee, Chairman and President of Janus Aspen Series. Chairman, Director
and President of Janus Capital. Chairman and Director of IDEX Management,
Inc., Largo, Florida (50% subsidiary of Janus Capital and investment
adviser to a group of mutual funds) ("IDEX").
James P. Craig*# - Trustee and Executive Vice President
100 Fillmore Street, Suite 300
Denver, CO 80206-4923
Trustee and Executive Vice President of Janus Aspen Series. Chief
Investment Officer, Vice President and Director of Janus Capital. Portfolio
manager of Janus Fund and Janus Balanced Fund series of the Trust.
Sharon S. Pichler* - Executive Vice President and Portfolio Manager
100 Fillmore Street, Suite 300
Denver, CO 80206-4923
Executive Vice President of Janus Money Market Fund, Janus Tax-Exempt Money
Market Fund and Janus Government Money Market Fund series of the Trust.
Vice President of Janus Capital. Formerly, Assistant Vice President and
portfolio manager at USAA Investment Management Co. (1990-1994) and
teaching associate at The University of Texas at San Antonio (1984-1990).
David C. Tucker* - Vice President and General Counsel
100 Fillmore Street, Suite 300
Denver, CO 80206-4923
Vice President and General Counsel of Janus Aspen Series. Vice President,
Secretary and General Counsel of Janus Capital. Vice President, General
Counsel and Director of Janus Service and Janus Distributors.
Steven R. Goodbarn* - Treasurer and Chief Financial Officer
100 Fillmore Street, Suite 300
Denver, CO 80206-4923
Treasurer and Chief Financial Officer of Janus Aspen Series. Vice President
of Finance, Chief Financial Officer and Treasurer of Janus Service, Janus
Distributors and Janus Capital. Director of Idex. Formerly (1979 to 1992),
with the accounting firm of Price Waterhouse LLP, Denver, Colorado, and
Kansas City, Missouri.
Kelley Abbott Howes* - Secretary
100 Fillmore Street, Suite 300
Denver, CO 80206-4923
Secretary of Janus Aspen Series. Associate Counsel of Janus Capital.
Formerly (1990 to 1994), with The Boston Company Advisors, Inc., Boston,
Massachusetts (mutual fund administration and advisory services).
John W. Shepardson# - Trustee
910 16th Street, Suite 222
Denver, CO 80202
Trustee of Janus Aspen Series. Historian.
William D. Stewart# - Trustee
5330 Sterling Drive
Boulder, CO 80302
Trustee of Janus Aspen Series. President of HPS Corporation, Boulder,
Colorado (manufacturer of vacuum fittings and valves).
- --------------------------------------------------------------------------------
* Interested person of the Trust and of Janus Capital.
# Member of the Executive Committee.
12
<PAGE>
Gary O. Loo - Trustee
102 N. Cascade Avenue, Suite 500
Colorado Springs, CO 80903
Trustee of Janus Aspen Series. President and a Director of High Valley
Group, Inc., Colorado Springs, Colorado (investments) since 1987.
Dennis B. Mullen - Trustee
1601 114th Avenue, SE
Alderwood Building, Suite 130
Bellevue, WA 98004
Trustee of Janus Aspen Series. President and Chief Executive Officer of BC
Northwest, L.P., a franchise of Boston Chicken, Inc., Bellevue, Washington
(restaurant chain). Formerly (1982 to 1993), Chairman, President and Chief
Executive Officer of Famous Restaurants, Inc., Scottsdale, Arizona
(restaurant chain).
Martin H. Waldinger - Trustee
4940 Sandshore Court
San Diego, CA 92130
Trustee of Janus Aspen Series. Private Consultant and Director of Run
Technologies, Inc., a software development firm, San Carlos, California.
Formerly (1989 to 1993), President and Chief Executive Officer of
Bridgecliff Management Services, Campbell, California (a condominium
association management company).
The Trustees are responsible for major decisions relating to each Fund's
objective, policies and techniques. The Trustees also supervise the operation of
the Funds by their officers and review the investment decisions of the officers
although they do not actively participate on a regular basis in making such
decisions.
The Executive Committee of the Trustees shall have and may exercise all the
powers and authority of the Board except for matters requiring action by the
whole Board pursuant to the Trust's Bylaws or Declaration of Trust,
Massachusetts Law or the 1940 Act.
The following table shows the aggregate compensation paid to each Trustee
by the Funds and all funds advised and sponsored by Janus Capital (collectively,
the "Janus Funds") for the periods indicated. None of the Trustees receive any
pension or retirement benefits from the Funds or the Janus Funds.
<TABLE>
<CAPTION>
Aggregate Compensation Total Compensation from the
from the Funds for fiscal year Janus Funds for calendar year
Name of Person, Position ended October 31, 1994** ended December 31, 1994***
- ------------------------ ------------------------ --------------------------
<S> <C> <C>
Thomas H. Bailey, Chairman* $0 $ 0
James P. Craig, Trustee*+ $0 $ 0
John W. Shepardson, Trustee $0 $39,250
William D. Stewart, Trustee $0 $39,250
Gary O. Loo, Trustee $0 $39,250
Dennis B. Mullen, Trustee $0 $39,250
Martin H. Waldinger, Trustee $0 $39,250
</TABLE>
* An interested person of the Funds and of Janus Capital. Compensated by
Janus Capital and not the Funds.
** The Funds had not commenced operations as of October 31, 1994.
*** As of December 31, 1994, Janus Funds consisted of two registered investment
companies comprised of a total of 20 funds.
+ Mr. Craig became a Trustee as of June 30, 1995.
PURCHASE OF SHARES
As stated in the Prospectus, Janus Distributors is a distributor of the
Funds' shares. Shares are sold at the net asset value per share as determined at
the close of the regular trading session of the New York Stock Exchange (the
"NYSE" or the "Exchange") next occurring after a purchase order is received and
accepted by a Fund. As stated in the Prospectus, the Funds each seek to maintain
a stable net asset value per share of $1.00. The Shareholder's Guide Section of
the Prospectus contains detailed information about the purchase of Shares.
13
<PAGE>
REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS
If investors do not elect in writing or by phone to receive their dividends
and distributions via wire transfer, all income dividends and capital gains
distributions, if any, on Shares are reinvested automatically in additional
Shares of that Fund at the NAV determined on the first business day following
the record date. Any such election (which may be made on the Application or by
phone) will apply to dividends and distributions the record dates of which fall
on or after the date that a Fund receives such notice. Investors receiving
distributions and dividends via wire transfer may elect in writing or by phone
to change back to automatic reinvestment at any time.
REDEMPTION OF SHARES
Procedures for redemption of Shares are set forth in the Shareholder's
Guide section of the Prospectus. Shares normally will be redeemed for cash,
although each Fund retains the right to redeem Shares in kind under unusual
circumstances, in order to protect the interests of remaining shareholders, by
delivery of securities selected from its assets at its discretion. However, the
Funds are governed by Rule 18f-1 under the 1940 Act, which requires each Fund to
redeem Shares solely in cash up to the lesser of $250,000 or 1% of the net asset
value of that Fund during any 90-day period for any one shareholder. Should
redemptions by any shareholder exceed such limitation, their Fund will have the
option of redeeming the excess in cash or in kind. If Shares are redeemed in
kind, the redeeming shareholder might incur brokerage costs in converting the
assets to cash. The method of valuing securities used to make redemptions in
kind will be the same as the method of valuing portfolio securities described
under "Determination of Net Asset Value" and such valuation will be made as of
the same time the redemption price is determined.
The right to require the Funds to redeem Shares may be suspended, or the
date of payment may be postponed, whenever (1) trading on the NYSE is
restricted, as determined by the Securities and Exchange Commission, or the NYSE
is closed except for holidays and weekends, (2) the Securities and Exchange
Commission permits such suspension and so orders, or (3) an emergency exists as
determined by the Securities and Exchange Commission so that disposal of
securities or determination of NAV is not reasonably practicable.
SHAREHOLDER ACCOUNTS
Detailed information about the general procedures for shareholder accounts
is set forth in the Prospectus. Applications to open accounts may be obtained by
calling the Funds at 1-800-29JANUS or writing to the Funds at 100 Fillmore
Street, Suite 300, Denver, Colorado 80206-4923, Attention: Extended Services.
DIVIDENDS AND TAX STATUS
Dividends representing substantially all of the net investment income and
any net realized gains on sales of securities are declared daily, Saturdays,
Sundays and holidays included, and distributed on the last business day of each
month. If a month begins on a Saturday, Sunday or holiday, dividends for those
days are paid at the end of the preceding month. A shareholder may receive
dividends via wire transfer or may choose to have dividends automatically
reinvested in a Fund's Shares. As described in the Prospectus, Shares purchased
by wire on a day on which the Funds calculate their net asset value will receive
that day's dividend if the purchase is effected at or prior to 3:00 p.m. (New
York time) for Janus Money Market Fund and Janus Government Money Market Fund
and 12:00 p.m. (New York time) for Janus Tax-Exempt Money Market Fund.
Otherwise, such Shares will begin to accrue dividends on the first business day
following receipt of the order. Requests for redemption of Shares will be
redeemed at the next determined net asset value. Redemption requests made by
wire that are received prior to 3:00 p.m. (New York time) for Janus Money Market
Fund and Janus Government Money Market Fund and 12:00 p.m. (New York time) for
Janus Tax-Exempt Money Market Fund will result in Shares being redeemed that
day. Proceeds of such a redemption will normally be sent to the predesignated
bank account on that day, but that day's dividend will not be received.
Distributions for all of the Funds (except Janus Tax-Exempt Money Market
Fund) are taxable income and are subject to federal income tax (except for
shareholders exempt from income tax), whether such distributions are received
via wire transfer or are reinvested in additional Shares. Full information
regarding the tax status of income dividends and any capital gains distributions
will be mailed to shareholders for tax purposes on or before January 31st of
each year. As described in detail in the Prospectus, Janus
14
<PAGE>
Tax-Exempt Money Market Fund anticipates that substantially all income dividends
it pays will be exempt from federal income tax, although dividends attributable
to interest on taxable investments, together with distributions from any net
realized short- or long-term capital gains, are taxable.
The Funds intend to qualify as regulated investment companies by satisfying
certain requirements prescribed by Subchapter M of the Internal Revenue Code of
1986.
PRINCIPAL SHAREHOLDERS
As of September 15, 1995, the Shares were not available to individual
investors and accordingly the Fund's officers and Trustees as a group owned less
than 1% of the outstanding Shares.
As of September 15, 1995, the following institutions owned more than 5% of
Janus Money Market Fund - Institutional Shares:
Institution Address Ownership %
- ----------- ------- -----------
Manville Corporation P.O. Box 5108, Denver, CO 80217-5108 8.22%
GE Capital 570 Lexington Avenue, 11th Floor, 13.83%
New York, NY 10022-6824
Charles Schwab &Co. Inc. 101 Montgomery Street, 13.70%
San Francisco, CA 94104-4122
Household Finance Corporation 2700 Sanders RD 1 South Trading Room, 5.43%
Prospect Heights, IL 60070-2701
Cetus Oncology Corporation 4560 Horton Street, L-149, 5.48%
Emeryville, CA 94608-2916
As of September 15, 1995, the following institutions owned more than 5% of
Janus Government Money Market Fund Institutional Shares:
Institution Address Ownership %
- ----------- ------- -----------
Western Digital Corporation 8105 Irvine Drive, Irvine, CA 92718 43.99%
Rio Properties P.O. Box 14160, Las Vegas, NV 89114-4160 20.69%
As of September 15, 1995, Janus Capital, which provided seed capital for
the Shares, owned 100% of Janus Tax-Exempt Money Market Fund - Institutional
Shares.
MISCELLANEOUS INFORMATION
Each Fund is an open-end management investment company registered under the
1940 Act as a series of the Trust, which was created on February 11, 1986. As of
the date of this SAI, the Trust consists of 13 other series, which are offered
by separate prospectuses. The Funds were added to the Trust as separate series
on December 9, 1994.
Janus Capital reserves the right to the name "Janus." In the event that
Janus Capital does not continue to provide investment advice to the Funds, the
Funds must cease to use the name "Janus" as soon as reasonably practicable.
Under Massachusetts law, shareholders of the Funds could, under certain
circumstances, be held liable for the obligations of their Fund. However, the
Agreement and Declaration of Trust (the "Declaration of Trust") disclaims
shareholder liability for acts or obligations of the Funds and requires that
notice of this disclaimer be given in each agreement, obligation or instrument
entered into or executed by the Funds or the Trustees. The Declaration of Trust
also provides for indemnification from the assets of the Funds for all losses
and expenses of any Fund shareholder held liable for the obligations of their
Fund. Thus, the risk of a shareholder incurring a financial loss on account of
its liability as a shareholder of one of the Funds is limited to circumstances
in which their Fund would be unable to meet its obligations. The possibility
that these circumstances would occur is remote. The Trustees intend to conduct
the operations of the Funds to avoid, to the extent possible, liability of
shareholders for liabilities of their Fund.
15
<PAGE>
SHARES OF THE TRUST
The Trust is authorized to issue an unlimited number of shares of
beneficial interest with a par value of one cent per share for each series of
the Trust. Shares of each Fund are fully paid and nonassessable when issued. All
shares of a Fund participate equally in dividends and other distributions by
such Fund, and in residual assets of that Fund in the event of liquidation.
Shares of each Fund have no preemptive, conversion or subscription rights.
The Trust is authorized to issue multiple classes of shares for each Fund.
Currently, Janus Money Market Fund, Janus Government Money Market Fund and Janus
Tax-Exempt Money Market Fund each offer two classes of shares. The Shares
discussed in this SAI are offered only to institutional and corporate clients
meeting certain minimum investment criteria. A second class of shares, Investor
Shares, is offered to the general public.
VOTING RIGHTS
The present Trustees were elected at a meeting of the Trust's shareholders
held on July 10, 1992, with the exception of Mr. Craig who was appointed by the
Trustees as of June 30, 1995. Under the Declaration of Trust, each Trustee will
continue in office until the termination of the Trust or his earlier death,
resignation, bankruptcy, incapacity or removal. Vacancies will be filled by a
majority of the remaining Trustees, subject to the 1940 Act. Therefore, no
annual or regular meetings of shareholders normally will be held, unless
otherwise required by the Declaration of Trust or the 1940 Act. Subject to the
foregoing, shareholders have the power to vote to elect or remove Trustees, to
terminate or reorganize their Fund, to amend the Declaration of Trust, to bring
certain derivative actions and on any other matters on which a shareholder vote
is required by the 1940 Act, the Declaration of Trust, the Trust's Bylaws or the
Trustees.
Each share of each series of the Trust has one vote (and fractional votes
for fractional shares). Shares of all series of the Trust have noncumulative
voting rights, which means that the holders of more than 50% of the shares of
all series of the Trust voting for the election of Trustees can elect 100% of
the Trustees if they choose to do so and, in such event, the holders of the
remaining shares will not be able to elect any Trustees. Each series or class of
the Trust will vote separately only with respect to those matters that affect
only that series or class.
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP, 950 Seventeenth Street, Suite 2500, Denver, Colorado
80202, independent accountants for the Funds, audit the Funds' annual financial
statements and prepare their tax returns.
REGISTRATION STATEMENT
The Trust has filed with the Securities and Exchange Commission,
Washington, D.C., a Registration Statement under the Securities Act of 1933, as
amended, with respect to the securities to which this SAI relates. If further
information is desired with respect to the Funds or such securities, reference
is made to the Registration Statement and the exhibits filed as a part thereof.
16
<PAGE>
FINANCIAL STATEMENTS
The following unaudited financial statements are for the period from April
14, 1995 (commencement of operations)to August 31, 1995.
<TABLE>
<CAPTION>
JANUS MONEY MARKET FUNDS JANUS JANUS
STATEMENTS OF OPERATIONS (UNAUDITED) JANUS GOVERNMENT TAX-EXEMPT
For the period from April 14, 1995 to August 31, 1995 MONEY MARKET MONEY MARKET MONEY MARKET
(all numbers in thousands) FUND FUND FUND
- ----------------------------------------------------- ------------ ------------ ------------
<S> <C> <C> <C>
Investment Income:
Interest $ 17,275 $ 3,035 $ 1,152
Dividends $ 0 $ 0 $ 0
Foreign Tax Withheld $ 0 $ 0 $ 0
$ 17,275 $ 3,035 $ 1,152
Expenses:
Advisory Fee for Investor Shares $ 223 $ 43 $ 29
Advisory Fee for Institutional Shares $ 60 $ 8 $ 0
Administrative Fee for Investor Shares $ 1,117 $ 215 $ 146
Administrative Fee for Institutional Shares $ 30 $ 3 $ 0
$ 1,430 $ 269 $ 175
Net Investment Income: $ 15,845 $ 2,766 $ 977
Net Realized Gain/(Loss) on Investments:
Net Realized gain/(loss) from securities transactions $ 0 $ 5 $ 3
Change in net unrealized appreciation
or depreciation of investments $ 0 $ 0 $ 0
Net gain/(loss) on investments $ 0 $ 5 $ 3
Net increase/(decrease) in net assets
resulting from operations $ 15,845 $ 2,771 $ 980
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
JANUS MONEY MARKET FUNDS JANUS JANUS
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) JANUS GOVERNMENT TAX-EXEMPT
As of August 31, 1995 MONEY MARKET MONEY MARKET MONEY MARKET
(all numbers in thousands except net asset value) FUND FUND FUND
- ----------------------------------------------------- ------------ ------------ ------------
Assets:
<S> <C> <C> <C>
Investments at amortized cost $ 972,018 $ 158,688 $ 73,227
Cash $ 44 ($ 201) $ 17
Receivables:
Investments Sold $ 0 $ 0 $ 0
Fund Shares Sold $ 1,452 $ 295 $ 60
Interest $ 4,649 $ 495 $ 359
Dividends $ 0 $ 0 $ 0
Other Assets $ 0 $ 0 $ 0
Total Assets $ 978,163 $ 159,277 $ 73,663
Liabilities:
Payables:
Investments Purchased $ 0 $ 0 $ 1,156
Fund Shares Repurchased $ 1,843 $ 705 $ 325
Dividends and Distributions $ 1,423 $ 78 $ 5
Advisory Fee $ 80 $ 14 $ 6
Administrative Fee $ 272 $ 50 $ 31
Total Liabilities $ 3,618 $ 847 $ 1,523
Total Net Assets $ 974,545 $ 158,430 $ 72,140
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 974,547 158,427 72,140
Net Asset Value Per Share $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
JANUS MONEY MARKET FUNDS JANUS JANUS
STATEMENTS OF CHANGES IN NET ASSETS (unaudited) JANUS GOVERNMENT TAX-EXEMPT
For the period from April 14, 1995 to August 31, 1995 MONEY MARKET MONEY MARKET MONEY MARKET
(all numbers in thousands) FUND FUND FUND
- ----------------------------------------------------- ------------ ------------ ------------
Operations:
<S> <C> <C> <C>
Net investment income(loss) $ 15,844 $ 2,766 $ 977
Net realized gain/(loss) from investment transactions $ 0 $ 5 ($ 3)
Change in unrealized net appreciation or
depreciation of investments $ 0 $ 0 $ 0
Net increase/(decrease) in net assets
resulting from operations $ 15,844 $ 2,771 $ 974
Dividends and Distributions to Shareholders:
Net investment income:
Investor Shares ($ 12,295) ($ 2,334) ($ 977)
Institutional Shares ($ 3,552) ($ 432) $ 0
Net realized gain from investment transactions:
Investor Shares $ 0 ($ 2) $ 3
Institutional Shares $ 0 ($ 1) $ 0
Net decrease from dividends and distributions ($ 15,847) ($ 2,769) ($ 974)
Capital Share Transactions:
Shares sold:
Investor Shares $ 940,695 $ 162,210 $ 114,522
Institutional Shares $1,023,955 $ 115,915 $ 10
Reinvested dividends and distributions:
Investor Shares $ 11,869 $ 2,255 $ 943
Institutional Shares $ 339 $ 240 $ 0
Shares repurchased:
Investor Shares ($ 348,963) ($ 48,577) ($ 43,335)
Institutional Shares ($ 653,347) ($ 73,615) $ 0
Net increase/(decrease)
from capital share transactions $ 974,548 $ 158,428 $ 72,140
Net increase/(decrease) in net assets $ 974,545 $ 158,430 $ 72,140
Net Assets beginning of period $ 0 $ 0 $ 0
Net Assets end of period $ 974,545 $ 158,430 $ 72,140
Net Assets consist of:
Capital (par value and paid-in surplus) $ 974,548 $ 158,428 $ 72,140
Undistributed net ivestment income ($ 3) $ 0 $ 0
Undistributed net realized gain/(loss) from investments $ 0 $ 2 $ 0
Unrealized appreciation/(depreciation) of investments $ 0 $ 0 $ 0
$ 974,545 $ 158,430 $ 72,140
Transactions in Fund Shares - Investor Shares
Shares Sold 940,695 162,210 114,522
Reinvested dividends and distributions 11,869 2,255 943
Total 952,564 164,465 115,465
Shares repurchased (348,963) (48,577) (43,335)
Net increase/(decrease) in Fund shares 603,601 115,888 72,130
Shares outstanding at beginning of period 0 0 0
Shares outstanding at end of period 603,601 115,888 72,130
Transactions in Fund Shares - Institutional Shares
Shares Sold 1,023,955 115,915 10
Reinvested dividends and distributions 339 240 0
Total 1,024,294 116,155 10
Shares repurchased (653,347) (73,615) 0
Net increase/(decrease) in Fund shares 370,947 42,540 10
Shares outstanding at beginning of period 0 0 0
Shares outstanding at end of period 370,947 42,540 10
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
JANUS MONEY MARKET FUNDS JANUS JANUS
FINANCIAL HIGHLIGHTS (unaudited) JANUS GOVERNMENT TAX-EXEMPT
For a share outstanding throughout the period MONEY MARKET MONEY MARKET MONEY MARKET
from April 14, 1995 to August 31, 1995 FUND FUND FUND
- --------------------------------------------- ------------ ------------ ------------
Institutional Shares 1995 1995 1995
- --------------------------------------------- ------------ ------------ ------------
<S> <C> <C> <C>
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income $ 0.01 $ 0.01 $ 0.01
Net gain or (losses) on investments
(both realized and unrealized) $ 0.00 $ 0.00 $ 0.00
Total from investment operations $ 0.01 $ 0.01 $ 0.01
Less Dividends and Distributions:
Dividends (from net investment income) ($ 0.01) ($ 0.01) ($ 0.01)
Distribution (from net capital gains) $ 0.00 $ 0.00 $ 0.00
Total dividends and distributions ($ 0.01) ($ 0.01) ($ 0.01)
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00
Total Return 2.26% 2.21% 1.43%
Net assets at end of period (in thousands) $ 370,947 $ 42,540 $ 10
Average net assets for the period (in thousands) $ 160,548 $ 20,054 $ 10
Ratio of expenses to average net assets 0.15% 0.15% 0.15%
Ratio of net investment income to average net assets 5.90% 5.77% 3.87%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
JANUS MONEY MARKET FUND
August 31, 1995 (unaudited)
Principal Amount Market Value
- ---------------- ------------
Short-Term Corporate Notes - 31.2%
Aluminum Co. of America
$ 12,000,000 4.625%, 2/15/96 $ 11,926,353
CSC Enterprises:
5,000,000 5.87%, 9/21/95 4,983,694
10,000,000 5.85%, 10/12/95 9,933,375
Countrywide Mortgage:
12,000,000 5.78%, 9/1/95 12,000,000
25,000,000 5.78%, 9/18/95 24,931,764
Dean Witter Discover
3,250,000 5.65%, 2/29/96 3,157,677
First Interstate Bancorp
6,000,000 10.50%, 3/1/96 6,130,737
1,000,000 Ford Motor Credit Co.
8.25%, 5/15/96 1,012,777
10,000,000 General Electric Capital Corp.
5.85%, 8/29/96 9,994,942
General Motors
Acceptance Corp.:
5,000,000 5.88%, 9/25/95 4,980,400
9,460,000 7.50%, 10/15/95 9,472,290
10,000,000 5.66%, 3/8/96 9,702,850
Hanover Direct Series A
2,400,000 6.1856%, 11/27/95 2,400,000
Hanover Direct Series B
5,000,000 6.1856%, 11/27/95 5,000,000
J.P. Morgan and Co.
10,000,000 5.75%, 8/7/96 9,991,117
Merrill Lynch and Co.:
25,000,000 5.74%, 9/11/95 24,960,139
25,000,000 5.75%, 9/18/95 24,932,118
Nationsbank Corp.:
10,000,000 6.14%, 9/20/95 9,967,594
5,000,000 6.12%, 10/2/95 4,973,650
Nynex Corp.:
10,000,000 5.88%, 9/12/95 9,982,033
Principal Amount Market Value
- ---------------- ------------
Short-Term Corporate Notes (cont'd)
21,500,000 5.80%, 10/13/95 $ 21,354,517
Renault Credit:
25,000,000 5.72%, 9/18/95 24,932,472
10,100,000 5.88%, 9/28/95 10,055,459
Shoney's Inc., #3
9,350,000 5.8705%, 9/25/95 9,350,000
Southern Container Corp.
10,000,000 5.8835%, 9/25/95 10,000,000
Spiegel Funding Corp.:
5,000,000 5.85%, 10/6/95 4,971,564
10,000,000 5.68%, 10/10/95 9,938,467
Windsor at Pine Ridge:
2,300,000 5.8705%, 9/25/95 2,300,000
6,650,000 5.8835%, 9/25/95 6,650,000
Ziegler Corp.
4,000,000 5.80%, 10/23/95 3,966,489
Total Short-Term Corporate Notes
(amortized cost $303,952,478) 303,952,478
General Obligation Bonds - 5.3%
Los Angeles Metropolitan
Transit Authority:
5,000,000 6.35%, 9/7/95 5,000,143
10,000,000 5.95%, 9/18/95 10,000,000
10,000,000 6.025%, 10/2/95 10,000,000
Richmond County, Georgia,
(Monsanto Co. Project),
12,200,000 6.27%, 6/1/20 12,200,000
San Diego, California:
5,000,000 5.95%, 9/1/00 4,999,854
9,700,000 6.12%, 9/1/20 9,700,000
Total General Obligation Bonds
(cost $51,899,997) 51,899,997
Time Deposits - 1.9%
First Union Bank of
North Carolina
18,300,000 5.8125%, 9/1/95
(cost $18,300,000) 18,300,000
19
<PAGE>
Principal Amount Market Value
- ---------------- ------------
Bank Notes - 6.1%
Bank of New York
5,000,000 6.41%, 6/3/96 $ 5,000,000
Comerica Bank of Illinois
5,000,000 5.76%, 9/29/95 4,999,145
First National Bank of Ohio
10,000,000 5.95%, 8/1/96 9,995,600
First National Bank of Chicago:
5,000,000 6.45%, 9/20/95 5,000,619
10,000,000 6.12%, 8/26/96 10,000,000
Regions Bank of Louisiana
15,000,000 6.40%, 10/5/95 15,000,000
Wachovia Bank of
North Carolina
9,000,000 6.20%, 8/5/96 9,026,918
Total Bank Notes
(amortized cost $59,022,282) 59,022,282
Taxable Variable Rate Demand Notes - 33.2%
9,200,000 Ann Arundel Medical Center,
5.85%, 7/1/24 9,200,000
2,200,000 Armstrong County, Pennsylvania,
Hospital Authority Revenue,
(St. Francis Financial Corp.),
Series A, 5.90%, 9/1/17 2,200,000
4,500,000 Bayliss Group Partners,
6.05%, 1/1/10 4,500,000
3,500,000 Bessemer, Alabama, Industrial
Development Bond,
(Big B Inc. Project), Series B,
5.89%, 5/1/05 3,500,000
3,200,000 Columbia County, Georgia,
Development Authority
Industrial Park Revenue,
5.95%, 3/1/10 3,200,000
3,300,000 Community Health System, Inc.,
Series A, 6.05%, 10/1/03 3,300,000
10,000,000 FCC National Bank,
5.95%, 4/26/96 9,995,488
15,900,000 Fontana, California, Public
Finance Authority COPS,
6.14%, 10/1/20 15,900,000
General Electric Capital Corp.,
Medium Term Notes:
15,000,000 6.00%, 4/5/96 14,997,280
3,000,000 6.03%, 4/19/96 3,000,000
General Motors Acceptance
Corp., Medium Term Notes:
10,000,000 6.2812%, 12/22/95 10,003,812
5,000,000 6.125%, 5/6/96 5,006,134
100,000 Genesys Michigan Health
System Taxable Obligations,
Series A, 5.94%, 4/1/20 100,000
3,155,000 GMG Warehouse LLC,
5.90%, 5/15/25 3,155,000
800,000 Great Bend, Kansas Economic
Development Revenue
Board, (Fuller Industries,
Inc. Project), 5.90%, 6/1/09 800,000
1,525,000 Health Care Taxable Obligation,
(Glencrest Real Estate &
Development LLC Project),
5.90%, 2/15/24 1,525,000
Health Insurance Plan
of Greater New York:
4,700,000 Series B, 5.85%, 7/1/16 4,700,000
6,900,000 Series B-2, 5.85%, 7/1/20 6,900,000
6,800,000 Health Midwest Ventures
Group, Inc., Demand Bond
Series 1994A, 5.90%, 8/1/19 6,800,000
Principal Amount Market Value
- ---------------- ------------
Taxable Variable Rate Demand Notes (cont'd)
1,900,000 Hinds County, Mississippi
Industrial Development
Revenue Bond, (Cal-Maine
Foods, Inc. Project),
5.95%, 11/1/05 $ 1,900,000
2,100,000 Illinois Development Finance
Authority, (Chicago
Educational Television Assn.),
Series B, 5.90%, 2,100,000
2,920,000 Letts Industries, Inc.,
5.90%, 2/1/20 2,920,000
4,000,000 Liliha Partners L.P. of Hawaii,
6.05%, 8/1/24 4,000,000
12,500,000 Mac Papers, Inc., 5.90%, 8/1/15 12,500,000
800,000 Maryland State Industrial
Development Financing
Authority Terminal Corp.
Facility Revenue,
6.08%, 9/1/09 800,000
Mississippi Business Finance
Industrial Development Bond:
5,000,000 (Dana Lighting Inc. Project),
5.95%, 5/1/10 5,000,000
11,500,000 (United Technologies Motor
Systems Inc. Project),
5.95%, 6/1/14 11,500,000
6,000,000 (Choctaw Foods Inc. Project),
5.95%, 8/1/15 6,000,000
130,000 (Bryan Foods, Inc. Project),
5.85%, 2/1/19 130,000
170,000 Missouri State Economic
Development Export &
Infrastructures Industrial
Development Revenue,
(Able Body Corp. Project),
6.45%, 6/1/08 170,000
1,000,000 Montgomery County
Pennsylvania Industrial
Development Authority,
(410 Horsham Associates
Project), 6.15%, 3/1/10 1,000,000
New York City, New York,
General Obligation:
20,000,000 6.00%, 8/1/14 20,000,000
30,000,000 5.95%, 8/1/25 30,000,000
2,470,000 Nova University, Florida,
Lease Revenue, (Miami
Dolphins Training Facility
Project), 5.95%, 3/1/03 2,470,000
5,800,000 Oxnard, California, Finance
Authority Refunding Lease
Revenue, 5.90%, 6/1/06 5,800,000
7,000,000 Pasadena, California, COPS,
(Los Robles Avenue
Parking Facility Project),
5.95%, 11/1/12 7,000,000
1,800,000 Renssalaer County, New York
Industrial Development
Authority, (Allied Signal
Project), 5.94%, 9/1/09 1,800,000
3,175,000 St. Francis Hawaii Healthcare
Foundation Revenue Bond,
6.05%, 8/1/12 3,175,000
25,500,000 San Bernardino County,
California, (County Center
Refining Project),
5.85%, 7/1/16 25,500,000
20
<PAGE>
Principal Amount Market Value
- ---------------- ------------
Taxable Variable Rate Demand Notes (cont'd)
9,365,000 San Jose California Financing
Authority, (Hayes Mansion
Revenue Project), Series A,
6.15%, 12/1/25 $ 9,365,000
1,000,000 South Central Texas Industrial
Development Bond,
(Rohr Industries Project),
5.90%, 5/1/20 1,000,000
20,000,000 Taxable Adjustable Demand
Notes, 5.95%, 8/1/25 20,000,000
6,200,000 Texas Veterans' Housing
Assistance, 5.87%, 12/1/3 6,200,000
5,380,000 Union City, Tennessee,
Industrial Development Board,
Cobank Limited LLC Project),
5.95%, 1/1/25 5,380,000
5,000,000 Venturecor, Inc., 5.90%, 5/15/35 5,000,000
24,350,000 Virginia State Housing
Development Authority
Residential Mortgage
Revenue, Series A,
5.95%, 3/1/02 24,350,000
Total Variable Rate Notes
(amortized cost $323,842,715) 323,842,715
Certificates of Deposit - 12.3%
Bank of Tokyo, Portland:
20,000,000 5.88%, 9/22/95 20,000,116
20,000,000 5.90%, 9/25/95 20,000,398
Bayerische Vereinsbank:
10,000,000 6.03%, 6/5/96 10,000,000
10,000,000 5.95%, 7/22/96 10,000,000
Canadian Imperial Bank:
5,000,000 6.40%, 6/5/96 5,000,000
10,000,000 6.10%, 7/26/96 10,000,000
45,000,000 Sanwa Bank Ltd., New York,
5.85%, 9/6/95 45,000,000
Total Certificates of Deposit
(amortized cost $120,000,514) 120,000,514
Promissory Notes - 4.6%
45,000,000 Goldman Sachs Group L.P.
5.9375%, 10/23/95
(cost $45,000,000) 45,000,000
Repurchase Agreements - 5.1%
50,000,000 First Chicago Repurchase
Agreement, 5.88%, dated
8/31/95, maturing 9/1/95,
to be repurchased at
$50,008,167, collateralized
by: $50,890,000 United States
Treasury Note, 6.00%, 8/31/97,
with a value of $51,001,450
(cost $50,000,000) 50,000,000
Total Investments - 99.7% 972,017,986
Cash, Receivables and Other Assets,
net of Liabilities - 0.3% 2,526,563
Net Assets - 100% $974,544,549
JANUS GOVERNMENT MONEY MARKET FUND
August 31, 1995 (unaudited)
Principal Amount Market Value
- ---------------- ------------
U.S. Government Agency
Discount Note Obligations - 15.7%
Federal Farm Credit Bank
$ 5,000,000 5.40%, 8/27/96 $ 4,729,250
Federal Home Loan Bank:
1,000,000 5.51%, 2/5/96 975,970
1,000,000 5.80%, 2/8/96 974,222
2,000,000 5.50%, 5/3/96 1,925,139
1,835,000 5.58%, 5/31/96 1,757,352
2,000,000 5.98%, 7/3/96 2,000,000
1,000,000 5.51%, 7/11/96 951,940
2,000,000 5.44%, 7/12/96 1,904,800
1,000,000 5.44%, 7/16/96 951,795
1,000,000 5.44%, 8/1/96 949,378
Federal Home Loan
Mortgage Corp.
2,000,000 5.83%, 11/1/95 1,980,243
Federal National
Mortgage Association:
1,000,000 5.84%, 9/1/95 1,000,000
1,000,000 5.84%, 10/18/95 992,376
2,000,000 5.49%, 4/15/96 1,930,765
2,000,000 5.39%, 6/20/96 1,912,263
Total U.S. Government Agency
(amortized cost $24,935,493) 24,935,493
U.S. Government Agency Obligations -
Variable Notes - 21.7%
Federal Farm Credit
Medium Term Note
5,000,000 6.20%, 3/21/96 4,999,701
2,000,000 6.10%, 6/13/97 1,998,273
Federal Home Loan Bank:
5,000,000 5.67%, 3/8/96 4,994,227
5,000,000 6.18%, 9/6/96 5,018,366
Federal National Mortgage
Medium Term Notes:
3,000,000 6.37%, 1/26/96 3,000,294
Student Loan
Marketing Association:
5,000,000 5.86%, 12/14/95 5,000,000
3,200,000 6.09%, 8/22/96 3,205,967
1,240,000 5.93%, 3/3/97 1,240,118
5,000,000 5.64%, 4/18/97 4,995,948
Total U.S. Government Agency - Variable
Notes (amortized cost $34,452,894) 34,452,894
U.S. Government Agency Notes - .6%
Federal Home Loan Bank Note
1,000,000 6.22%, 6/17/96
(amortized cost $1,000,000) 1,000,000
Repurchase Agreements - 62.0%
35,000,000 First Chicago Repurchase
Agreement, 5.88% dated
8/31/95, maturing 9/1/95,
to be repurchased at
$35,005,717, collateralized
by $35,625,000 in U.S.
Treasury Notes 6.00%,
8/31/97 with a value of
$35,703,019 35,000,000
21
<PAGE>
Principal Amount Market Value
- ---------------- ------------
Repurchase Agreements (cont'd)
34,300,000 HSBC Repurchase Agreement,
5.86% dated 8/31/95,
maturing 9/1/95, to be
repurchased at $34,305,583
collateralized by: $32,550,000
in U.S. Treasury Notes:
6.00% - 7.875%, 9/30/99 -
11/30/99; with respective
values of $6,716,789,
$1,821,023, $1,849,125,
$3,661,495, $20,937,950 $ 34,300,000
29,000,000 Morgan Stanley Repurchase
Agreement, 5.80% dated 8/31/95,
maturing 9/1/95,
to be repurchased at
$29,004,672 collateralized
by: $1,375,000 in Federal
National Conventional
Pooled Loans 7.50%, 8/1/25;
$97,396,000 in Federal
National Mortgage
Association Notes 1.9562%,
11/23/25; $24,550,000 in
U.S. Treasury Notes 7.75%,
3/31/96 with respective values
of $1,384,884, $2,649,610
and $25,624,033 29,000,000
Total Repurchase Agreements
(cost $98,300,000) 98,300,000
Total Investments - 100.2% 158,688,387
Liabilities, net of Cash, Receivables
and Other Assets - (0.2%) (258,640)
Net Assets - 100% $158,429,747
JANUS TAX-EXEMPT MONEY MARKET FUND
August 31, 1995 (unaudited)
Principal Amount Market Value
- ---------------- ------------
General Obligation Notes - 18.1%
$ 1,000,000 Allegheny County, Pennsylvania
Port Authority Grant
Anticipation Notes, Series A,
3.875%, 6/28/96 $ 1,000,000
1,000,000 Baltimore, Maryland Industrial
Development Authority,
3.20%, 9/6/95 1,000,000
1,000,000 Corcoran, California Joint
Unified School District, Tax
and Revenue Anticipation
Notes, 4.25%, 6/28/96 1,001,188
1,000,000 Harris County, Texas Hospital
District, 6.90%, 2/15/96 1,013,530
1,000,000 Maricopa County, Arizona
Unified High School District
Number 210, Phoenix Tax
Anticipation Notes,
Series A, 4.45%, 7/31/96 1,004,237
750,000 Metropolitan Government
Nashville and Davidson
County, Tennesse,
4.75%, 1/15/96 750,000
3,295,000 Mono County, California Board
of Education Tax Anticipation
Notes, 4.50%, 6/28/96 3,307,554
1,500,000 North Carolina Eastern
3.20%, 9/6/95 1,500,000
1,150,000 Port of Seattle, Washington
Revenue, Series A,
5.50%, 2/1/96 1,155,359
300,000 State of Texas 3.25%, 10/5/95 300,000
1,000,000 Tuolomne County, California
Board of Education Tax and
Revenue Anticipation Notes,
4.50%, 6/28/96 1,004,367
Total General Obligation Notes
(amortized cost $13,036,235) 13,036,235
Put Bonds - 5.8%
500,000 Harris County, Texas Hospital
District, 8.50%, 4/1/15 522,481
1,000,000 Klamath Falls, Oregon Electric
Revenue, (Salt Caves
Hydroelectric), Series A,
4.40%, 5/1/23 1,000,000
2,180,000 Missouri State Environmental
Impact and Energy Resource
Authority, Pollution Control
Revenue, (Union Electric Co.),
Series B, 4.00%, 6/1/14 2,180,000
500,000 Pendleton, Kentucky
Self-Insurance Funding,
4.00%, 7/1/01 500,000
Total Put Bonds (amortized cost $4,202,481) 4,202,481
Variable Rate Demand Notes - 77.6%
California - 15.6%
3,500,000 California School Cash Reserve
Program Authority,
4.75%, 7/5/96 3,528,314
3,100,000 California Statewide
Communities, (Whispering
Winds Apartments),
Series D, 3.90%, 12/1/22 3,100,000
22
<PAGE>
Principal Amount Market Value
- ---------------- ------------
California (cont'd)
500,000 Carlsbad Housing &
Redevelopment Commission,
(Seascape Village Project),
4.00%, 12/12/05 $ 500,000
Irvine Ranch Water District:
800,000 (Consolidated Refunding
Project), Series B,
3.60%, 10/1/99 800,000
300,000 (Consolidated Refunding
Project), Series B,
3.60%, 10/1/04 300,000
200,000 (Consolidated Refunding
Project), Series B,
3.60%, 10/1/09 200,000
1,000,000 (Waterworks Improvement
District), Series A,
3.60%, 11/15/13 1,000,000
1,100,000 (Sewer Improvement District),
Series A, 3.60%, 11/15/13 1,100,000
300,000 (Consolidated Refunding
Project), 3.60%, 6/1/15 300,000
400,000 Orange County Apartment
Development Revenue,
(Aliso Creek Project),
Series B, 4.20%, 11/1/05 400,000
11,228,314
Florida - 1.5%
200,000 Broward County Housing
Finance Authority
Multi-Family Housing
Revenue, (Jacaranda Village
Project), 3.60%, 9/1/97 200,000
200,000 Dade County, Florida
(Apartment Revenue),
Series A, 3.80%, 10/1/09 200,000
700,000 Pinellas County Housing
Finance Authority
Multi-Family Housing
Revenue, (Lynn Lake Arms
Phase II Project), Series II-A,
3.75%, 7/1/11 700,000
1,100,000
Georgia - 5.9%
1,900,000 Glynn-Brunswick Hospital
Authority Revenue, (S.E.
Georgia Regional Medical
Center Project), Series A,
3.75%, 8/1/09 1,900,000
2,335,000 Peachtree City Development
Authority Revenue,
(Equitable PCDC Project),
3.75%, 7/1/10 2,335,000
4,235,000
Illinois - 6.0%
2,100,000 Bartlett Multi-Family Housing
Revenue, (Bartlett Square
Apartments), Series A,
3.65%, 3/1/25 2,100,000
649,070 Illinois Village of Franklin Park,
(AM Castle and Company
Project), 3.70%, 6/1/17 649,070
187,500 Village of Rosemont, Illinois,
(AM Castle and Company
Project), 3.70%, 9/1/17 187,500
Principal Amount Market Value
- ---------------- ------------
Illinois (cont'd)
1,400,000 Wood Dale Industrial
Development Revenue,
(Nippon Express, Inc. Project),
3.80%, 6/1/00 $ 1,400,000
4,336,570
Kansas - 2.9%
2,100,000 Wichita, Kansas Revenue,
(CSJ Health Systems Project),
Series XXV, 3.80%, 10/1/11 2,100,000
Kentucky - 1.4%
1,000,000 Calvert City, Kentucky PCRB
(Air Products and Chemical
Income Project), Series B,
3.65%, 2/1/07 1,000,000
Louisiana - 4.4%
1,620,000 Quachita, Louisiana Industrial
Development Bond (McRaes
Inc. Project), 3.75%, 7/1/04 1,620,000
100,000 South Louisiana Port Comm
Marine Term Facility Authority,
(Occidental Petroleum
Project), 3.60%, 7/1/21 100,000
1,485,000 Sulphur, Louisiana Industrial
Development Revenue,
(La Quinta Inns Project),
3.75%, 12/1/04 1,485,000
3,205,000
Maryland - 4.9%
3,500,000 Baltimore, Maryland (Terminal
Corp. Project), 3.70%, 8/1/16 3,500,000
Minnesota - 0.1%
100,000 Austin Commercial
Development Revenue,
(Hy-Vee Foods, Inc. Project),
3.75%, 12/1/04 100,000
Missouri - 3.1%
195,000 Columbia Certificate of
Participation Authority,
3.60%, 8/15/99 195,000
973,000 Kansas City Industrial
Development Authority,
(AM Castle and Company
Project), 3.70%, 6/1/10 973,000
500,000 Missouri Health Education
Financing Authority Hospital
Finance Revenue, (SSM
Health Care Project),
3.90%, 6/1/06 500,000
600,000 West Plains Industrial Revenue
Authority, (West Plains Manor
Project), 4.05%, 11/1/10 600,000
2,268,000
New York - 1.3%
900,000 Ontario County, NY Industrial
Development Authority,
(Eastman Kodak/V Assoc.
Project), 4.75%, 8/1/15 900,000
Ohio - 0.8%
590,000 Ohio Industrial Development
Revenue Bond, (AM Castle and
Company Project),
3.70%, 12/1/06 590,000
23
<PAGE>
Principal Amount Market Value
- ---------------- ------------
Oklahoma - 4.3%
615,000 Claremore Redevelopment
Authority Industrial
Development Revenue,
(Worthington Cylinder Corp.
Project), 3.75%, 1/1/11 $ 615,000
2,500,000 Tulsa Home Finance Authority,
(Greenbriar Project),
Series B, 4.00%, 3/15/05 2,500,000
3,115,000
Pennsylvania - 3.5%
1,000,000 Chester County Industrial
Development Revenue,
(Woods Project),
3.70%, 3/31/15 1,000,000
200,000 Delaware Valley Regional
Financing Authority,
Series 1985A-1V 1991,
3.60%, 12/1/17 200,000
1,300,000 Venango Industrial
Development Authority,
(Pennzoil Co. Project),
Series A, 4.25%, 12/1/12 1,300,000
2,500,000
South Carolina - 3.5%
2,000,000 Dorchester County (BOC Group
Project), 3.75%, 12/8/00 2,000,000
500,000 Lexington County
(Charter Rivers Hospital),
3.70%, 6/1/07 500,000
2,500,000
Tennessee - 11.1%
2,500,000 Greeneville Health &
Educational Facilities Board,
(Laughlin Memorial Hospital,
Inc. Project), 3.70%, 10/1/14 2,500,000
2,500,000 Hamilton County (Tennessee
Aquarium - IMAX),
3.70%, 3/1/15 2,500,000
Metropolitan Government
Nashville & Davidson County
Health and Educational
Facilities Board:
1,000,000 (Belmont University Project),
3.75%, 8/1/09 1,000,000
2,000,000 (Richland Place, Inc. Project),
3.55%, 5/1/23 2,000,000
8,000,000
Principal Amount Market Value
- ---------------- ------------
Texas - 7.2%
100,000 Grapevine Industrial
Development Corp. Revenue,
(American Airlines Inc.),
Series A-4 3.50%, 12/1/24 $ 100,000
1,400,000 Harris County Health Facilities
Development Corp. Hospital
Revenue, (Memorial Senior
Services, Inc. Project),
3.65%, 5/1/18 1,400,000
1,800,000 Lubbock, Texas Hospital
Finance Development Corp.
Revenue, (Charter Plains
Hospital Project),
3.70%, 10/1/13 1,800,000
1,910,000 Maverick County Industrial
Developement Revenue
Bond, (La Quinta Motor Inns),
3.75%, 12/1/01 1,910,000
5,210,000
Wisconsin - 0.1%
100,000 Wisconsin Health & Educational
Facilities Authority, (Felican
Health Care, Inc. Project),
3.80%, 1/1/19 100,000
Total Variable Rate Notes
(amortized cost $55,987,884) 55,987,884
Total Investments - 101.5% 73,226,600
Cash, Receivables and other Assets,
net of Liabilities - (1.5%) (1,086,522)
Net Assets - 100% $72,140,078
24
<PAGE>
APPENDIX A
DESCRIPTION OF SECURITIES RATINGS
MOODY'S AND STANDARD & POOR'S
MUNICIPAL AND CORPORATE BONDS AND MUNICIPAL LOANS
The two highest ratings of Standard & Poor's Ratings Services ("S&P") for
municipal and corporate bonds are AAA and AA. Bonds rated AAA have the highest
rating assigned by S&P to a debt obligation. Capacity to pay interest and repay
principal is extremely strong. Bonds rated AA have a very strong capacity to pay
interest and repay principal and differ from the highest rated issues only in a
small degree. The AA rating may be modified by the addition of a plus (+) or
minus (-) sign to show relative standing within that rating category.
The two highest ratings of Moody's Investors Service, Inc. ("Moody's") for
municipal and corporate bonds are Aaa and Aa. Bonds rated Aaa are judged by
Moody's to be of the best quality. Bonds rated Aa are judged to be of high
quality by all standards. Together with the Aaa group, they comprise what are
generally known as high-grade bonds. Moody's states that Aa bonds are rated
lower than the best bonds because margins of protection or other elements make
long-term risks appear somewhat larger than Aaa securities. The generic rating
Aa may be modified by the addition of the numerals 1, 2 or 3. The modifier 1
indicates that the security ranks in the higher end of the Aa rating category;
the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates that
the issue ranks in the lower end of such rating category.
SHORT TERM MUNICIPAL LOANS
S&P's highest rating for short-term municipal loans is SP-1. S&P states
that short-term municipal securities bearing the SP-1 designation have a strong
capacity to pay principal and interest. Those issues rated SP-1 which are
determined to possess a very strong capacity to pay debt service will be given a
plus (+) designation. Issues rated SP-2 have satisfactory capacity to pay
principal and interest with some vulnerability to adverse financial and economic
changes over the term of the notes.
Moody's highest rating for short-term municipal loans is MIG-1/VMIG-1.
Moody's states that short-term municipal securities rated MIG-1/VMIG-1 are of
the best quality, enjoying strong protection from established cash flows of
funds for their servicing or from established and broad-based access to the
market for refinancing, or both. Loans bearing the MIG-2/VMIG-2 designation are
of high quality, with margins of protection ample although not so large as in
the MIG-1/VMIG-1 group.
OTHER SHORT-TERM DEBT SECURITIES
Prime-1 and Prime-2 are the two highest ratings assigned by Moody's for
other short-term debt securities and commercial paper, and A-1 and A-2 are the
two highest ratings for commercial paper assigned by S&P. Moody's uses the
numbers 1, 2 and 3 to denote relative strength within its highest classification
of Prime, while S&P uses the numbers 1, 2 and 3 to denote relative strength
within its highest classification of A. Issuers rated Prime-1 by Moody's have a
superior ability for repayment of senior short-term debt obligations and have
many of the following characteristics: leading market positions in
well-established industries, high rates of return on funds employed,
conservative capitalization structure with moderate reliance on debt and ample
asset protection, broad margins in earnings coverage of fixed financial charges
and high internal cash generation, and well established access to a range of
financial markets and assured sources of alternate liquidity. Issuers rated
Prime-2 by Moody's have a strong ability for repayment of senior short-term debt
obligations and display many of the same characteristics displayed by issuers
rated Prime-1, but to a lesser degree. Issuers rated A-1 by S&P carry a strong
degree of safety regarding timely repayment. Those issues determined to possess
extremely strong safety characteristics are denoted with a plus (+) designation.
Issuers rated A-2 by S&P carry a satisfactory degree of safety regarding timely
repayment.
FITCH
F-1+ - Exceptionally strong credit quality. Issues assigned this rating are
regarded as having the strongest degree of assurance for timely payment.
F-1 - Very strong credit quality. Issues assigned this rating reflect an
assurance for timely payment only slightly less in degree than issues rated
F-1+.
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F-2 - Good credit quality. Issues assigned this rating have a satisfactory
degree of assurance for timely payments, but the margin of safety is not as
great as the F-1+ and F-1 ratings.
DUFF & PHELPS INC.
Duff 1+ - Highest certainty of timely payment. Short-term liquidity, including
internal operating factors and/or ready access to alternative sources of
funds, is clearly outstanding, and safety is just below risk-free U.S.
Treasury short-term obligations.
Duff 1 - Very high certainty of timely payment. Liquidity factors are excellent
and supported by good fundamental protection factors. Risk factors are
minor.
Duff 1- - High certainty of timely payment. Liquidity factors are strong and
supported by good fundamental protection factors. Risk factors are very
small.
Duff 2 - Good certainty of timely payment. Liquidity factors and company
fundamentals are sound. Although ongoing funding needs may enlarge total
financing requirements, access to capital markets is good. Risk factors are
small.
THOMSON BANKWATCH, INC.
TBW-1- The highest category; indicates a very high degree of likelihood that
principal and interest will be paid on a timely basis.
TBW-2- The second highest category; while the degree of safety regarding timely
repayment of principal and interest is strong, the relative degree of
safety is not as high as for issues rated TBW-1.
TBW-3- The lowest investment grade category; indicates that while more
susceptible to adverse developments (both internal and external) than
obligations with higher ratings, capacity to service principal and interest
in a timely fashion is considered adequate.
TBW-4- The lowest rating category; this rating is regarded as non-investment
grade and therefore speculative.
IBCA, INC.
A1+ - Obligations supported by the highest capacity for timely repayment. Where
issues possess a particularly strong credit feature, a rating of A1+ is
assigned.
A2 - Obligations supported by a good capacity for timely repayment.
A3 - Obligations supported by a satisfactory capacity for timely repayment.
B - Obligations for which there is an uncertainty as to the capacity to
ensure timely repayment.
C - Obligations for which there is a high risk of default or which are
currently in default.
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APPENDIX B
DESCRIPTION OF MUNICIPAL SECURITIES
Municipal Notes generally are used to provide for short-term capital needs
and usually have maturities of one year or less. They include the following:
1. Project Notes, which carry a U.S. government guarantee, are issued by
public bodies (called "local issuing agencies") created under the laws of a
state, territory, or U.S. possession. They have maturities that range up to one
year from the date of issuance. Project Notes are backed by an agreement between
the local issuing agency and the Federal Department of Housing and Urban
Development. These Notes provide financing for a wide range of financial
assistance programs for housing, redevelopment, and related needs (such as
low-income housing programs and renewal programs).
2. Tax Anticipation Notes are issued to finance working capital needs of
municipalities. Generally, they are issued in anticipation of various seasonal
tax revenues, such as income, sales, use and business taxes, and are payable
from these specific future taxes.
3. Revenue Anticipation Notes are issued in expectation of receipt of other
types of revenues, such as Federal revenues available under the Federal Revenue
Sharing Programs.
4. Bond Anticipation Notes are issued to provide interim financing until
long-term financing can be arranged. In most cases, the long-term bonds then
provide the money for the repayment of the Notes.
5. Construction Loan Notes are sold to provide construction financing.
After successful completion and acceptance, many projects receive permanent
financing through the Federal Housing Administration under the Federal National
Mortgage Association ("Fannie Mae") or the Government National Mortgage
Association ("Ginnie Mae").
6. Tax-Exempt Commercial Paper is a short-term obligation with a stated
maturity of 365 days or less. It is issued by agencies of state and local
governments to finance seasonal working capital needs or as short-term financing
in anticipation of longer term financing.
Municipal Bonds, which meet longer term capital needs and generally have
maturities of more than one year when issued, have three principal
classifications:
1. General Obligation Bonds are issued by such entities as states,
counties, cities, towns, and regional districts. The proceeds of these
obligations are used to fund a wide range of public projects, including
construction or improvement of schools, highways and roads, and water and sewer
systems. The basic security behind General Obligation Bonds is the issuer's
pledge of its full faith and credit and taxing power for the payment of
principal and interest. The taxes that can be levied for the payment of debt
service may be limited or unlimited as to the rate or amount of special
assessments.
2. Revenue Bonds in recent years have come to include an increasingly wide
variety of types of municipal obligations. As with other kinds of municipal
obligations, the issuers of revenue bonds may consist of virtually any form of
state or local governmental entity, including states, state agencies, cities,
counties, authorities of various kinds, such as public housing or redevelopment
authorities, and special districts, such as water, sewer or sanitary districts.
Generally, revenue bonds are secured by the revenues or net revenues derived
from a particular facility, group of facilities, or, in some cases, the proceeds
of a special excise or other specific revenue source. Revenue bonds are issued
to finance a wide variety of capital projects including electric, gas, water and
sewer systems; highways, bridges, and tunnels; port and airport facilities;
colleges and universities; and hospitals. Many of these bonds provide additional
security in the form of a debt service reserve fund to be used to make principal
and interest payments. Various forms of credit enhancement, such as a bank
letter of credit or municipal bond insurance, may also be employed in revenue
bond issues. Housing authorities have a wide range of security, including
partially or fully insured mortgages, rent subsidized and/or collateralized
mortgages, and/or the net revenues from housing or other public projects. Some
authorities provide further security in the form of a state's ability (without
obligation) to make up deficiencies in the debt service reserve fund.
In recent years, revenue bonds have been issued in large volumes for
projects that are privately owned and operated (see 3 below).
3. Private Activity Bonds are considered municipal bonds if the interest
paid thereon is exempt from Federal income tax and are issued by or on behalf of
public authorities to raise money to finance various privately operated
facilities for business and manufacturing, housing and health. These bonds are
also
27
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used to finance public facilities such as airports, mass transit systems and
ports. The payment of the principal and interest on such bonds is dependent
solely on the ability of the facility's user to meet its financial obligations
and the pledge, if any, of real and personal property as security for such
payment.
While, at one time, the pertinent provisions of the Internal Revenue Code
permitted private activity bonds to bear tax-exempt interest in connection with
virtually any type of commercial or industrial project (subject to various
restrictions as to authorized costs, size limitations, state per capita volume
restrictions, and other matters), the types of qualifying projects under the
Code have become increasingly limited, particularly since the enactment of the
Tax Reform Act of 1986. Under current provisions of the Code, tax-exempt
financing remains available, under prescribed conditions, for certain privately
owned and operated rental multi-family housing facilities, nonprofit hospital
and nursing home projects, airports, docks and wharves, mass commuting
facilities and solid waste disposal projects, among others, and for the
refunding (that is, the tax-exempt refinancing) of various kinds of other
private commercial projects originally financed with tax-exempt bonds. In future
years, the types of projects qualifying under the Code for tax-exempt financing
are expected to become increasingly limited.
Because of terminology formerly used in the Internal Revenue Code,
virtually any form of private activity bond may still be referred to as an
"industrial development bond," but more and more frequently revenue bonds have
become classified according to the particular type of facility being financed,
such as hospital revenue bonds, nursing home revenue bonds, multi-family housing
revenue bonds, single family housing revenue bonds, industrial development
revenue bonds, solid waste resource recovery revenue bonds, and so on.
Other Municipal Obligations, incurred for a variety of financing purposes,
include: municipal leases, which may take the form of a lease or an installment
purchase or conditional sale contract, are issued by state and local governments
and authorities to acquire a wide variety of equipment and facilities such as
fire and sanitation vehicles, telecommunications equipment and other capital
assets. Municipal leases frequently have special risks not normally associated
with general obligation or revenue bonds. Leases and installment purchase or
conditional sale contracts (which normally provide for title to the leased asset
to pass eventually to the government issuer) have evolved as a means for
governmental issuers to acquire property and equipment without meeting the
constitutional and statutory requirements for the issuance of debt. The
debt-issuance limitations of many state constitutions and statutes are deemed to
be inapplicable because of the inclusion in many leases or contracts of
"non-appropriation" clauses that provide that the governmental issuer has no
obligation to make future payments under the lease or contract unless money is
appropriated for such purpose by the appropriate legislative body on a yearly or
other periodic basis. To reduce this risk, the Fund will only purchase municipal
leases subject to a non-appropriation clause when the payment of principal and
accrued interest is backed by an unconditional irrevocable letter of credit, or
guarantee of a bank or other entity that meets the criteria described in the
Prospectus.
Tax-exempt bonds are also categorized according to whether the interest is
or is not includible in the calculation of alternative minimum taxes imposed on
individuals, according to whether the costs of acquiring or carrying the bonds
are or are not deductible in part by banks and other financial institutions, and
according to other criteria relevant for Federal income tax purposes. Due to the
increasing complexity of Internal Revenue Code and related requirements
governing the issuance of tax-exempt bonds, industry practice has uniformly
required, as a condition to the issuance of such bonds, but particularly for
revenue bonds, an opinion of nationally recognized bond counsel as to the
tax-exempt status of interest on the bonds.
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JANUS INVESTMENT FUND
PART C - OTHER INFORMATION
ITEM 24. Financial Statements and Exhibits
List all financial statements and exhibits filed as part of the
Registration Statement.
(a)(1) Financial Statements Included in the Prospectus:
Financial Highlights for each of the following Funds:
Janus Money Market Fund - Institutional Shares
Janus Government Money Market Fund - Institutional Shares
Janus Tax-Exempt Money Market Fund - Institutional Shares
(a)(2) Financial Statements included in the Statement of Additional
Information:
The Financial Statements for each of the following Funds are
contained in the Statement of Additional Information:
Janus Money Market Fund - Institutional Shares
Janus Government Money Market Fund - Institutional Shares
Janus Tax-Exempt Money Market Fund - Institutional Shares
(b) Exhibits:
Exhibit 1 (a) Agreement and Declaration of Trust, dated
February 11, 1986 is incorporated herein
by reference to Exhibit 1 to
Post-Effective Amendment No. 30.
(b) Certificate of Designation for Janus
Growth and Income Fund is incorporated
herein by reference to Exhibit 1(b) to
Post-Effective Amendment No. 42.
(c) Certificate of Designation for Janus
Worldwide Fund is incorporated herein by
reference to Exhibit 1(c) to Post-
Effective Amendment No. 42.
(d) Certificate of Designation for Janus
Twenty Fund is incorporated herein by
reference to Exhibit 1(d) to Post-
Effective Amendment No. 46.
(e) Certificate of Designation for Janus
Flexible Income Fund is incorporated
herein by reference to Exhibit 1(e) to
Post- Effective Amendment No. 46.
(f) Certificate of Designation for Janus
Intermediate Government Securities Fund
is incorporated herein by
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reference to Exhibit 1(f) to
Post-Effective Amendment No. 46.
(g) Certificate of Designation for Janus
Venture Fund is incorporated herein by
reference to Exhibit 1(g) to Post-
Effective Amendment No. 47.
(h) Certificate of Designation for Janus
Enterprise Fund is incorporated herein by
reference to Exhibit 1(h) to Post-
Effective Amendment No. 48.
(i) Certificate of Designation for Janus
Balanced Fund is incorporated herein by
reference to Exhibit 1(i) to Post-
Effective Amendment No. 48.
(j) Certificate of Designation for Janus
Short-Term Bond Fund is incorporated
herein by reference to Exhibit 1(j) to
Post- Effective Amendment No. 48.
(k) Certificate of Designation for Janus
Federal Tax-Exempt Fund is incorporated
herein by reference to Exhibit 1(k) to
Post-Effective Amendment No. 54.
(l) Certificate of Designation for Janus
Mercury Fund is incorporated herein by
reference to Exhibit 1(l) to Post-
Effective Amendment No. 54.
(m) Certificate of Designation for Janus
Overseas Fund is incorporated herein by
reference to Exhibit 1(m) to
Post-Effective Amendment No. 60.
(n) Form of Amendment to the Registrant's
Agreement and Declaration of Trust is
incorporated herein by reference to
Exhibit 1(n) to Post-Effective Amendment
No. 62.
(o) Form of Certificate of Designation for
Janus Money Market Fund, Janus Government
Money Market Fund and Janus Tax-Exempt
Money Market Fund is incorporated herein
by reference to Exhibit 1(o) to
Post-Effective Amendment No. 62.
(p) Form of Certificate of Designation for
Janus High-Yield Fund and Janus Olympus
Fund is incorporated herein by reference
to Exhibit 1(p) to Post-Effective
Amendment No. 68.
Exhibit 2 Bylaws are incorporated herein by
reference to Exhibit 2 to Post-Effective
Amendment No. 30.
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Exhibit 3 Not Applicable.
Exhibit 4 (a) Specimen Stock Certificate for Janus
Fund(1) is incorporated herein by
reference to Exhibit 4(b) to
Post-Effective Amendment No. 42.
(b) Specimen Stock Certificate for Janus
Growth and Income Fund is incorporated
herein by reference to Exhibit 4(b) to
Post-Effective Amendment No. 42.
(c) Specimen Stock Certificate for Janus
Worldwide Fund is incorporated herein by
reference to Exhibit 4(c) to Post-
Effective Amendment No. 42.
(d) Specimen Stock Certificate for Janus
Twenty Fund(1) is incorporated herein by
reference to Exhibit 4(d) to Post-
Effective Amendment No. 46.
(e) Specimen Stock Certificate for Janus
Flexible Income Fund(1) is incorporated
herein by reference to Exhibit 4(e) to
Post-Effective Amendment No. 46.
(f) Specimen Stock Certificate for Janus
Intermediate Government Securities
Fund(1) is incorporated herein by
reference to Exhibit 4(f) to
Post-Effective Amendment No. 46.
(g) Specimen Stock Certificate for Janus
Venture Fund(1) is incorporated herein by
reference to Exhibit 4(g) to Post-
Effective Amendment 47.
(h) Specimen Stock Certificate for Janus
Enterprise Fund is incorporated herein by
reference to Exhibit 4(h) to Post-
Effective Amendment No. 48.
(i) Specimen Stock Certificate for Janus
Balanced Fund is incorporated herein by
reference to Exhibit 4(i) to Post-
Effective Amendment No. 48.
(j) Specimen Stock Certificate for Janus
Short-Term Bond Fund is incorporated
herein by reference to Exhibit 4(j) to
Post- Effective Amendment No. 48.
- -------------------
(1) Outstanding certificates representing shares of predecessor entity to this
series of the Trust are deemed to represent shares of this series.
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(k) Specimen Stock Certificate for Janus
Federal Tax-Exempt Fund is incorporated
herein by reference to Exhibit 4(k) to
Post-Effective Amendment No. 54.
(l) Specimen Stock Certificate for Janus
Mercury Fund is incorporated herein by
reference to Exhibit 4(l) to Post-
Effective Amendment No. 54.
(m) Specimen Stock Certificate for Janus
Overseas Fund is incorporated herein by
reference to Exhibit 4(m) to
Post-Effective Amendment No. 60.
(n) Specimen Stock Certificates for Janus
High-Yield Fund and Janus Olympus Fund
are incorporated herein by reference to
Exhibit 4(n) to Post-Effective Amendment
No. 68.
Exhibit 5 (a) Investment Advisory Agreement for Janus
Fund is incorporated herein by reference
to Exhibit 5 to Post- Effective Amendment
No. 30.
(b) Investment Advisory Agreement for Janus
Growth and Income Fund and Janus
Worldwide Fund is incorporated herein by
reference to Exhibit 5(b) to
Post-Effective Amendment No. 42.
(c) Form of Investment Advisory Agreement for
Janus Twenty Fund and Janus Venture Fund
is incorporated herein by reference to
Exhibit 5(c) to Post-Effective Amendment
No. 46.
(d) Form of Investment Advisory Agreement for
Janus Flexible Income Fund and Janus
Intermediate Government Securities Fund
is incorporated herein by reference to
Exhibit 5(d) to Post-Effective Amendment
No. 46.
(e) Form of Investment Advisory Agreement for
Janus Enterprise Fund, Janus Balanced
Fund and Janus Short- Term Bond Fund is
incorporated herein by reference to
Exhibit 5(e) to Post-Effective Amendment
No. 48.
(f) Form of Investment Advisory Agreement for
Janus Federal Tax-Exempt Fund and Janus
Mercury Fund is incorporated herein by
reference to Exhibit 5(f) to
Post-Effective Amendment No. 54.
(g) Form of Investment Advisory Agreement for
Janus Overseas Fund is incorporated
herein by reference to Exhibit 5(g) to
Post-Effective Amendment No. 60.
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(h) Form of Investment Advisory Agreement for
Janus Money Market Fund, Janus Government
Money Market Fund and Janus Tax-Exempt
Money Market Fund is incorporated herein
by reference to Exhibit 5(h) to
Post-Effective Amendment No. 64.
(i) Draft form of Investment Advisory
Agreement for Janus High-Yield Fund is
incorporated herein by reference to
Exhibit 5(i) to Post-Effective Amendment
No. 68.
(j) Draft form of Investment Advisory
Agreement for Janus Olympus Fund is
incorporated herein by reference to
Exhibit 5(j) to Post-Effective Amendment
No. 68.
Exhibit 6 Form of Distribution Agreement between
Janus Investment Fund and Janus
Distributors, Inc. is incorporated herein
by reference to Exhibit 6 to
Post-Effective Amendment No. 57.
Exhibit 7 Not Applicable.
Exhibit 8 (a) Custodian Contract between Janus
Investment Fund and State Street Bank and
Trust Company is incorporated herein by
reference to Exhibit 8(a) to
Post-Effective Amendment No. 32.
(b) Amendment dated April 25, 1990 of State
Street Custodian Contract is incorporated
herein by reference to Exhibit 8(b) to
Post-Effective Amendment No. 40.
(c) Letter Agreement dated February 1, 1991
regarding State Street Custodian Contract
is incorporated herein by reference to
Exhibit 8(c) to Post-Effective Amendment
No. 42.
(d) Custodian Contract between Janus
Investment Fund and Investors Fiduciary
Trust Company is incorporated herein by
reference to Exhibit 8(d) to
Post-Effective Amendment No. 42.
(e) Letter Agreement dated October 9, 1992
regarding State Street Custodian
Agreement is incorporated herein by
reference to Exhibit 8(e) to
Post-Effective Amendment No. 52.
(f) Letter Agreement dated April 28, 1993
regarding State Street Custodian
Agreement is incorporated herein by
reference to Exhibit 8(f) to
Post-Effective Amendment No. 60.
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(g) Letter Agreement dated April 4, 1994
regarding State Street Custodian
Agreement is incorporated herein by
reference to Exhibit 8(g) to
Post-Effective Amendment No. 64.
(h) Form of Custody Agreement between Janus
Investment Fund, on behalf of Janus Money
Market Fund, Janus Government Money
Market Fund and Janus Tax-Exempt Money
Market Fund, and United Missouri Bank,
N.A. is incorporated herein by reference
to Exhibit 8(h) to Post- Effective
Amendment No. 64.
(i) Letter Agreement regarding State Street
Custodian Agreement, with respect to
Janus High-Yield Fund and Janus Olympus
Fund is incorporated herein by reference
to Exhibit 8(i) to Post-Effective
Amendment No. 68.
Exhibit 9 (a) Transfer Agency Agreement with Investors
Fiduciary Trust Company is incorporated
herein by reference to Exhibit 9(b) to
Post-Effective Amendment No. 42.
(b) Subagency Agreement between Janus Service
Corporation and Investors Fiduciary Trust
Company is incorporated herein by
reference to Exhibit 9(c) to
Post-Effective Amendment No. 42.
(c) Form of Administration Agreement with
Janus Capital Corporation for Janus Money
Market Fund, Janus Government Money
Market Fund and Janus Tax-Exempt Money
Market Fund is incorporated herein by
reference to Exhibit 9(c) to
Post-Effective Amendment No. 64.
(d) Transfer Agency Agreement with Janus
Service Corporation for Janus Money
Market Fund, Janus Government Money
Market Fund and Janus Tax-Exempt Money
Market Fund is incorporated herein by
reference to Exhibit 9(d) to
Post-Effective Amendment No. 64.
(e) Form of Transfer Agency Agreement with
Janus Service Corporation for Janus
High-Yield Fund and Janus Olympus Fund
will be filed by amendment.
Exhibit 10 (a) Opinion and Consent of Messrs. Davis,
Graham & Stubbs with respect to shares of
Janus Fund is incorporated herein by
reference to Exhibit 10 (a) to
Post-Effective Amendment No. 31.
(b) Opinion and Consent of Fund Counsel with
respect to shares of Janus Growth and
Income Fund and Janus Worldwide
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Fund is incorporated herein by reference
to Exhibit 10(b) to Post-Effective
Amendment 42.
(c) Opinion and Consent of Fund Counsel with
respect to shares of Janus Enterprise
Fund, Janus Balanced Fund and Janus
Short-Term Bond Fund is incorporated
herein by reference to Exhibit 10(d) to
Post-Effective Amendment No. 48.
(d) Opinion and Consent of Messrs. Sullivan
and Worcester with respect to shares of
Janus Twenty Fund is incorporated herein
by reference to Exhibit 10(e) to
Post-Effective Amendment No. 49.
(e) Opinion and Consent of Messrs. Sullivan
and Worcester with respect to shares of
Janus Venture Fund is incorporated herein
by reference to Exhibit 10(f) to
Post-Effective Amendment No. 49.
(f) Opinion and Consent of Messrs. Sullivan
and Worcester with respect to shares of
Janus Flexible Income Fund is
incorporated herein by reference to
Exhibit 10(g) to Post- Effective
Amendment No. 49.
(g) Opinion and Consent of Messrs. Sullivan
and Worcester with respect to shares of
Janus Intermediate Government Securities
Fund is incorporated herein by reference
to Exhibit 10(h) to Post-Effective
Amendment No. 49.
(h) Opinion and Consent of Fund Counsel with
respect to shares of Janus Federal
Tax-Exempt Fund and Janus Mercury Fund is
incorporated herein by reference to
Exhibit 10(i) to Post- Effective
Amendment No. 54.
(i) Opinion and Consent of Fund Counsel with
respect to shares of Janus Overseas Fund
is incorporated herein by reference to
Exhibit 10(i) to Post-Effective Amendment
No. 60.
(j) Opinion and Consent of Fund Counsel with
respect to shares of Janus Money Market
Fund, Janus Government Money Market Fund
and Janus Tax-Exempt Money Market Fund is
incorporated herein by reference to
Exhibit 10(j) to Post- Effective
Amendment No. 62.
(k) Opinion and Consent of Fund Counsel with
respect to Institutional Shares of Janus
Money Market Fund, Janus Government Money
Market Fund and Janus Tax-Exempt Money
Market Fund is incorporated herein by
reference to Exhibit 10(k) to
Post-Effective Amendment No. 65.
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(l) Opinion and Consent of Fund Counsel with
respect to shares of Janus High-Yield
Fund and Janus Olympus Fund is
incorporated herein by reference to
Exhibit 10(l) to Post- Effective
Amendment No. 68.
Exhibit 11 Consent of Price Waterhouse LLP is filed
herein as Exhibit 11.
Exhibit 12 Not Applicable.
Exhibit 13 Not Applicable.
Exhibit 14 (a) Model Individual Retirement Plan is
incorporated herein by reference to
Exhibit 14(a) to Post-Effective Amendment
No. 57.
(b) Model Defined Contribution Retirement
Plan is incorporated herein by reference
to Exhibit 14(b) to Post-Effective
Amendment No. 41.
(c) Model Section 403(b)(7) Plan is
incorporated herein by reference to
Exhibit 14(c) to Post-Effective Amendment
No. 38.
Exhibit 15 Not Applicable.
Exhibit 16 (a) Computation of Total Return is
incorporated herein by reference to
Exhibit 16 to Post-Effective Amendment
No. 44.
(b) Computation of Current Yield and
Effective Yield is incorporated herein by
reference to Exhibit 16(b) to Post-
Effective Amendment No. 67.
Exhibit 17 Powers of Attorney dated as of June 30,
1995, are incorporated herein by
reference to Exhibit 17 to Post-
Effective Amendment No. 67.
Exhibit 18 (a) Form of plan entered into by Janus Money
Market Fund, Janus Government Money
Market Fund and Janus Tax- Exempt Money
Market Fund pursuant to Rule 18f-3
setting forth the separate arrangement
and expense allocation of each class of
such Funds filed as Exhibit 18 to
Post-Effective Amendment No. 66 is
withdrawn.
(b) Restated form of Rule 18f-3 plan entered
into by Janus Money Market Fund, Janus
Government Money Market Fund and Janus
Tax-Exempt Money Market Fund is filed
herein as Exhibit 18(b).
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Exhibit 27 A Financial Data Schedule for each of the
following Funds is filed herein as
Exhibit 27:
Janus Money Market Fund - Institutional
Shares
Janus Government Money Market Fund -
Institutional Shares
Janus Tax-Exempt Money Market Fund -
Institutional Shares
ITEM 25. Persons Controlled by or Under Common Control with Registrant
None
ITEM 26. Number of Holders of Securities
The number of record holders of shares of the Registrant as of August
31, 1995, was as follows:
Number of
Title of Class Record Holders
-------------- --------------
Janus Fund shares 786,506
Janus Growth and Income Fund shares 81,258
Janus Worldwide Fund shares 195,443
Janus Overseas Fund shares 22,160
Janus Twenty Fund shares 349,337
Janus Flexible Income Fund shares 33,830
Janus Intermediate Government
Securities Fund shares 5,210
Janus Venture Fund shares 145,096
Janus Enterprise Fund shares 69,346
Janus Balanced Fund shares 18,988
Janus Short-Term Bond Fund shares 5,327
Janus Federal Tax-Exempt Fund shares 3,866
Janus Mercury Fund shares 171,526
Janus Money Market Fund - Investor Shares 69,736
Janus Money Market Fund - Institutional Shares 43
Janus Government Money
Market Fund - Investor Shares 12,239
Janus Government Money
Market Fund - Institutional Shares 29
Janus Tax-Exempt Money
Market Fund - Investor Shares 6,363
Janus Tax-Exempt Money
Market Fund - Institutional Shares 5
Janus High-Yield Fund shares N/A
Janus Olympus Fund shares N/A
ITEM 27. Indemnification
Article VIII of Janus Investment Fund's Agreement and Declaration of Trust
provides for indemnification of certain persons acting on behalf of the Funds.
In general, Trustees and officers will be indemnified against liability and
against all expenses of litigation incurred by them in connection with any
claim, action, suit or proceeding (or settlement of the same) in which they
become involved by virtue of their Fund office, unless their conduct is
determined to constitute
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willful misfeasance, bad faith, gross negligence or reckless disregard of their
duties, or unless it has been determined that they have not acted in good faith
in the reasonable belief that their actions were in or not opposed to the best
interests of the Funds. A determination that a person covered by the
indemnification provisions is entitled to indemnification may be made by the
court or other body before which the proceeding is brought, or by either a vote
of a majority of a quorum of Trustees who are neither "interested persons" of
the Trust nor parties to the proceeding or by an independent legal counsel in a
written opinion. The Funds also may advance money for these expenses, provided
that the Trustee or officer undertakes to repay the Funds if his conduct is
later determined to preclude indemnification, and that either he provide
security for the undertaking, the Trust be insured against losses resulting from
lawful advances or a majority of a quorum of disinterested Trustees, or
independent counsel in a written opinion, determines that he ultimately will be
found to be entitled to indemnification. The Trust also maintains a liability
insurance policy covering its Trustees and officers.
ITEM 28. Business and Other Connections of Investment Adviser
The only business of Janus Capital Corporation is to serve as the
investment adviser of the Registrant and as investment adviser or subadviser to
several other mutual funds and private and retirement accounts. The only
businesses, professions, vocations or employments of a substantial nature of
Thomas H. Bailey, James P. Craig, Thomas F. Marsico, James P. Goff, Warren B.
Lammert, Ronald V. Speaker, Helen Young Hayes, Sharon S. Pichler, Scott W.
Schoelzel, David C. Tucker and Steven R. Goodbarn, officers and/or directors of
Janus Capital Corporation, are described under "Officers and Trustees" in the
currently effective Statements of Additional Information included in this
Registration Statement. Mr. Michael E. Herman, a director of Janus Capital
Corporation, is Chairman of the Finance Committee (1990 to present) of Ewing
Marion Kauffman Foundation, 4900 Oak, Kansas City, Missouri 64112. Mr. Michael
N. Stolper, a director of Janus Capital Corporation, is President of Stolper &
Company, Inc., 525 "B" Street, Suite 1080, San Diego, California 92101, an
investment performance consultant. Mr. Thomas A. McDonnell, a director of Janus
Capital Corporation, is President, Chief Executive Officer and a Director of DST
Systems, Inc., 1004 Baltimore Avenue, Kansas City, Missouri 64105, provider of
data processing and recordkeeping services for various mutual funds, and is
Executive Vice President and a director of Kansas City Southern Industries,
Inc., 114 W. 11th Street, Kansas City, Missouri 64105, a publicly traded holding
company whose primary subsidiaries are engaged in transportation, information
processing and financial services.
ITEM 29. Principal Underwriters
(a) Janus Distributors, Inc. ("Janus Distributors") does not serve as
a principal underwriter for any investment company other than
Registrant.
(b) The principal business address, positions with Janus Distributors
and positions with Registrant of David C. Tucker and Steven R.
Goodbarn, officers and directors of Janus Distributors, are
described under "Officers and Trustees" in the Statement of
Additional Information included in this Registration Statement.
(c) Not applicable.
C-10
<PAGE>
ITEM 30. Location of Accounts and Records
The accounts, books and other documents required to be maintained by
Section 31(a) of the Investment Company Act of 1940 and the rules promulgated
thereunder are maintained by Janus Capital Corporation and Janus Service
Corporation, both of which are located at 100 Fillmore Street, Suite 300,
Denver, Colorado 80206-4923 and by Investors Fiduciary Trust Company, 127 W.
10th Street, Kansas City, Missouri 64105, State Street Bank and Trust Company,
P.O. Box 351, Boston, Massachusetts 02101 and United Missouri Bank, P.O. Box
419226, Kansas City, Missouri 64141-6226.
ITEM 31. Management Services
The Registrant has no management-related service contract which is not
discussed in Part A or Part B of this form.
ITEM 32. Undertakings
(a) Not applicable.
(b) Not applicable.
(c) The Registrant undertakes to furnish each person to whom a
prospectus is delivered with a copy of the Registrant's latest
annual report to shareholders, upon request and without charge.
C-11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Amendment to its Registration
Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Amendment to its Registration Statement to be signed on its behalf
by the undersigned, thereto duly authorized, in the City of Denver, and State of
Colorado, on the 28th day of September, 1995.
JANUS INVESTMENT FUND
By: /s/ Thomas H. Bailey
Thomas H. Bailey, President
Janus Investment Fund is organized under the Agreement and Declaration of
Trust of the Registrant dated February 11, 1986, a copy of which is on file with
the Secretary of State of The Commonwealth of Massachusetts. The obligations of
the Registrant hereunder are not binding upon any of the Trustees, shareholders,
nominees, officers, agents or employees of the Registrant personally, but bind
only the trust property of the Registrant, as provided in the Agreement and
Declaration of Trust of the Registrant. The execution of this Amendment to the
Registration Statement has been authorized by the Trustees of the Registrant and
this Amendment to the Registration Statement has been signed by an authorized
officer of the Registrant, acting as such, and neither such authorization by
such Trustees nor such execution by such officer shall be deemed to have been
made by any of them personally, but shall bind only the trust property of the
Registrant as provided in its Declaration of Trust.
Pursuant to the requirements of the Securities Act of 1933, this Amendment
to the Registration Statement has been signed below by the following persons in
the capacities and on the dates indicated.
Signature Title Date
- --------- ----- ----
/s/ Thomas H. Bailey President September 28, 1995
Thomas H. Bailey (Principal Executive
Officer) and Trustee
/s/ Steven R. Goodbarn Treasurer and Chief September 28, 1995
Steven R. Goodbarn Financial Officer
(Principal Financial
and Accounting Officer)
/s/ James P. Craig Trustee September 28, 1995
James P. Craig
<PAGE>
Gary O. Loo* Trustee September 28, 1995
Gary O. Loo
Dennis B. Mullen* Trustee September 28, 1995
Dennis B. Mullen
John W. Shepardson* Trustee September 28, 1995
John W. Shepardson
William D. Stewart* Trustee September 28, 1995
William D. Stewart
Martin H. Waldinger* Trustee September 28, 1995
Martin H. Waldinger
/s/ Steven R. Goodbarn
*By Steven R. Goodbarn
Attorney-in-Fact
<PAGE>
INDEX OF EXHIBITS
Exhibit 11 Consent of Price Waterhouse
Exhibit 18(b) Restated form of Rule 18f-3 Plan
Exhibit 27 Financial Data Schedules
EXHIBIT 11
Consent of Independent Accountants
We hereby consent to the reference to us under the heading "Independent
Accountants" in the Statement of Additional Information constituting part of
this Post-Effective Amendment No. 69 to the Registration Statement on Form N-1A
of Janus Investment Fund.
/s/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
Denver, Colorado
September 27, 1995
EXHIBIT 18(b)
April 14, 1995
As Amended September 27, 1995
RULE 18f-3 PLAN
This Rule 18f-3 Plan ("Plan") is adopted by Janus Investment Fund ("JIF")
with respect to Investor Shares and Institutional Shares (each a "Class") of
each of the Janus Money Market Fund, the Janus Government Money Market Fund and
the Janus Tax-Exempt Money Market Fund (each a "Fund") portfolios of JIF in
accordance with the provisions of Rule 18f-3 under the Investment Company Act of
1940 (the "Act").
1. Pursuant to and as described in Administration Agreements, dated
December 9, 1994, between Janus Capital Corporation ("JCC") and JIF with respect
to each Fund (each an "Agreement"), JCC provides each Fund with certain services
incidental to the Fund's operations and business and, for providing those
services, is paid a fee by the Fund (an "Administration Fee"). A portion of each
Administration Fee relates to services performed by JCC that vary on a Class
basis as identified in Section 2 of this Plan; those services are referred to as
Rule 18f-3 Plan Services. A portion of each Administration Fee also relates to
Class Expenses (as defined below) that are assumed by JCC pursuant to Section 5
of each Agreement. The fees paid for performing Rule 18f-3 Plan Services and
assuming Class Expenses are referred to as Rule 18f-3 Plan Fees. Rule 18f-3 Plan
Fees and Class Expenses, as defined below, relating to each Class are borne
solely by the Class to which they relate and within each Class are borne by each
share pro rata on the basis of its net asset value.
2. Rule 18f-3 Plan Services include the following: provision of
transfer agency and shareholder servicing functions for each Class; preparation
and filing of documents necessary to obtain and maintain registration and
qualification of shares of each Class with the Securities and Exchange
Commission and state or territorial securities commissions; clerical,
recordkeeping and
<PAGE>
bookkeeping services related to a specific Class; preparation and distribution
of prospectuses, statements of additional information, reports to shareholders
and proxy statements relating to a specific Class; preparation of materials for
all meetings of the Trustees of JIF insofar as they relate to matters concerning
a specific Class; and all other services performed by JCC pursuant to each
Agreement insofar as they relate to a specific Class.
3. Pursuant to Section 5 of each Agreement, JCC assumes those Class
Expenses (as defined below) of each Fund that are not borne by JIF as provided
in Section 6 of the Agreement. JCC is not separately reimbursed for assuming
those Class Expenses.
4. Expenses incurred by JIF or assumed by JCC pursuant to each Agreement
that are chargeable to a specific Class ("Class Expenses") include expenses (not
including advisory or custodial fees or other expenses related to the management
of a Fund's assets) that are incurred in a different amount by that Class or are
in consideration of services provided to that Class of a different kind or to a
different degree than are provided to another Class. Class Expenses include: (i)
expenses related to preparing and distributing materials such as shareholder
reports, prospectuses and proxy statements to current shareholders of a specific
Class; (ii) Blue Sky registration fees incurred with respect to a specific
Class; (iii) litigation or other legal expenses relating to a specific Class;
(iv) fees or expenses of the Trustees of JIF who are not interested persons of
JCC ("Independent Trustees"), and of counsel and consultants to the Independent
Trustees, incurred as a result of issues relating to a specific Class; (v)
auditing and consulting expenses relating to a specific Class; and (vi)
additional expenses incurred with respect to a specific Class as identified and
approved by the Trustees of JIF and the Independent Trustees.
2
<PAGE>
5. The Rule 18f-3 Plan Fees are up to .50% of the average daily net assets
of the Investor Shares and up to .15% of the average daily net assets of the
Institutional Shares of each Fund. JCC, in its sole discretion, may waive any
portion of the Rule 18f-3 Plan Fees with respect to a Class of Shares of a Fund.
6. The differences in the Rule 18f-3 Plan Fees and Class Expenses payable
by each Class pursuant to this Plan are due to the differing levels of services
offered to shareholders and investors eligible to purchase shares of each Class
and to the differing levels of expenses expected to be incurred with respect to
each Class. Investor Shares are sold to individual and other retail investors,
have a lower investment minimum than is applicable to the Institutional Shares
and have a checkwriting feature. Institutional Shares are offered only to
eligible institutional and individual investors willing to meet the higher
investment minimum of that Class. The Rule 18f-3 Plan Fees attributable to the
Investor Shares are higher than those attributable to the Institutional Shares
because of the increased costs (expressed as a percentage of assets) associated
with retail customer accounts as opposed to larger individual and institutional
accounts. These differences are due primarily to (i) smaller account balances
and transaction sizes associated with retail accounts, (ii) costs associated
with the checkwriting feature, (iii) costs associated with paper processing of
retail accounts versus wire or ACH processing of institutional accounts, and
(iv) the more extensive shareholder servicing needs of retail investors.
7. The exchange privilege offered by each Fund provides that shares of a
Class may be exchanged for (i) shares of certain other portfolios of JIF and
(ii) shares of the same Class of another Fund. Shareholders of another portfolio
of JIF who wish to exchange their shares for shares of a Fund will be required
to meet the standards applicable to the Class they wish to exchange into (e.g.,
3
<PAGE>
the investment minimum). Notwithstanding the foregoing, exchanges will be
permitted among Classes should a shareholder cease to be eligible to purchase
shares of the original Class or become eligible to purchase shares of a
different Class by reason of a change in the shareholder's status.
8. This Plan is adopted as of April 14, 1995, and amended as of September
27, 1995, pursuant to determinations previously made by the Trustees of JIF,
including a majority of the Independent Trustees, that the multiple class
structure and the allocation of expenses as set forth in the Plan are in the
best interests of each of the Investor and Institutional Shares individually and
each Fund and JIF as a whole. This Plan will continue in effect until terminated
in accordance with Section 11.
9. In any year in which JCC waives a portion of the Rule 18f-3 Plan Fee
payable to JCC with respect to a Class of Shares of a Fund, the Trustees will
review the waiver by JCC in order to confirm that the waiver is not a de facto
modification of the fees provided for in the Fund's advisory or any other
contracts for which the fees may not vary by Class pursuant to Rule 18f-3.
10. Material amendments to the Plan may be made with respect to a Class at
any time with the approval of the Trustees of JIF, including a majority of the
Independent Trustees, upon finding that the Plan as proposed to be amended,
including the allocation of expenses, is in the best interests of each Class
individually and each Fund and JIF as a whole. Non-material amendments to the
Plan may be made by JCC at any time.
11. This Plan may be terminated by the Trustees without penalty at any
time.
4
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from financial
statements dated August 31, 1995 included in the Fund's Statement of Additional
Information and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<SERIES>
<NUMBER> 142
<NAME> JANUS MONEY MARKET FUND-INSTITUTIONAL SHARES
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> APR-17-1995
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 972,018
<INVESTMENTS-AT-VALUE> 972,018
<RECEIVABLES> 6,101
<ASSETS-OTHER> 44
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 978,163
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,618
<TOTAL-LIABILITIES> 3,618
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 370,947
<SHARES-COMMON-STOCK> 370,947
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 370,947
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,646
<OTHER-INCOME> 0
<EXPENSES-NET> (90)
<NET-INVESTMENT-INCOME> 3,556
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 3,556
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,552)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,023,955
<NUMBER-OF-SHARES-REDEEMED> (653,347)
<SHARES-REINVESTED> 339
<NET-CHANGE-IN-ASSETS> 370,947
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 60
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 90
<AVERAGE-NET-ASSETS> 160,548
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.010
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> (0.010)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 0.150
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from financial
statements dated August 31, 1995 included in the Fund's Statement of Additional
Information and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<SERIES>
<NUMBER> 152
<NAME> JANUS GOVERNMENT MONEY MARKET FUND-INSTITUTIONAL SHARES
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> APR-17-1995
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 158,688
<INVESTMENTS-AT-VALUE> 158,688
<RECEIVABLES> 790
<ASSETS-OTHER> (201)
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 159,277
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 847
<TOTAL-LIABILITIES> 847
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 42,540
<SHARES-COMMON-STOCK> 42,540
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 42,540
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 446
<OTHER-INCOME> 0
<EXPENSES-NET> (11)
<NET-INVESTMENT-INCOME> 435
<REALIZED-GAINS-CURRENT> 1
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 436
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 115,915
<NUMBER-OF-SHARES-REDEEMED> (73,615)
<SHARES-REINVESTED> 240
<NET-CHANGE-IN-ASSETS> 42,540
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 20,054
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.010
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> (0.010)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 0.150
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from financial
statements dated August 31, 1995 included in the Fund's Statement of Additional
Information and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<SERIES>
<NUMBER> 162
<NAME> JANUS TAX-EXEMPT MONEY MARKET FUND-INSTITUTIONAL SHARES
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> APR-17-1995
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 73,227
<INVESTMENTS-AT-VALUE> 73,227
<RECEIVABLES> 419
<ASSETS-OTHER> 17
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 73,663
<PAYABLE-FOR-SECURITIES> 1,156
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 367
<TOTAL-LIABILITIES> 1,523
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10
<SHARES-COMMON-STOCK> 10
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 10
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 10
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 10
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.010
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> (0.010)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 0.150
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
